Surprising Social Security Benefits for Working Americans – How to Claim Yours Today

Social Security benefits may seem straightforward, but the details can quickly become complicated. Many people don’t realize that benefits extend beyond retirement income to include options for spouses, ex-spouses, children, and survivors.

In fact, in 2024, about 2.5 million Americans receive spousal benefits, and over 5.5 million collect survivor benefits. Knowing who qualifies and when to claim these benefits is key to maximizing Social Security payouts.

Spousal

Spousal benefits allow the current spouse of a Social Security recipient to claim a portion of the worker’s benefit. However, specific rules determine eligibility and payout amounts. To qualify:

• You must be at least 62 years old.
• If you haven’t worked 35 years or your benefit is smaller than your spouse’s, you may collect up to 50% of your spouse’s benefit at full retirement age.

The strategy here is to evaluate whether it’s more advantageous to claim your own Social Security or take spousal benefits. This flexibility can ensure couples optimize their retirement income.

Survivor

Survivor benefits provide income to widows, widowers, and other dependents. The rules, however, differ slightly from spousal benefits:

• You must be at least 60 years old to claim survivor benefits, or between 50-59 if you have a disability.
• You must have been married to the deceased for at least nine months.
• If you remarry before turning 60, you lose eligibility for survivor benefits.

Survivor benefits also extend beyond current spouses. Ex-spouses who were married for at least 10 years can receive survivor benefits, as well as children under 18 or disabled children of any age. Those who wait until 67 years old to claim survivor benefits can receive the full amount their deceased spouse was entitled to.

Financial Strategy

Leslie Thompson, CFA and co-founder of Spectrum Wealth Management, emphasizes that couples need to carefully time their Social Security claims. “You can only collect either your Social Security or survivor benefits, not both. It’s critical for couples to plan when each spouse retires since men and women have different longevity risks.”

Women, in particular, must plan wisely since they tend to live longer and may face higher financial risks later in life. Thompson suggests retirees assess both monthly income and expenses to avoid future shortfalls.

She advises practicing retirement-level spending before retiring to determine what adjustments might be needed. “Tracking expenses and budgeting are essential,” she says. “Even small savings, such as finding cheaper medications, can add up over time.”

Inflation

Adjusting financial strategies in retirement is also crucial, especially with rising inflation. Since Social Security payments alone may not be enough, retirees must carefully manage their investments. According to Thompson, “Retirees need to take on calculated risk and adjust their portfolios to preserve purchasing power. Women, given their longer life expectancy, need to focus on building a cash reserve to ensure their savings last.”

Investments should reflect both the need for growth and the ability to withstand market fluctuations. Proper allocation of assets can help retirees maintain financial security throughout their retirement years.

Spousal and survivor benefits provide essential support for millions of Americans, but knowing the rules is vital for maximizing these benefits. Couples must carefully plan when to claim Social Security, while widows, ex-spouses, and other beneficiaries need to know their options to avoid missing out.

Additionally, retirees should reassess their financial strategies, particularly given inflation and longer life expectancies. Planning ahead, budgeting wisely, and adjusting investments can ensure a smoother and more secure retirement.

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