Social Security Strategy When One Spouse Never Worked

A spouse who never worked can still receive Social Security, but the math works a little differently than for people who did work. It’s important for couples to carefully consider when it makes sense for each spouse to claim their government benefits.

The non-working spouse can get Social Security equal to up to half of the working spouse’s full benefit. Just like with the working spouse’s benefit, the check amount for a non-working spouse will be reduced if they claim before full retirement age.

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The spousal benefit

A non-working spouse is entitled to up to 50% of the worker’s full retirement age benefit.

For instance, if the working spouse is set to receive $3,000 per month at full retirement age, the non-working spouse can receive up to $1,500 per month if the benefit is claimed at full retirement age.

The worker has to file first

One notable difference about spousal benefits is that the non-working spouse must wait for the working spouse to claim benefits before they can also claim benefits.

For instance, it may be optimal for a non-working spouse to claim the spousal benefit at 67. However, if the working spouse is 62 and isn’t ready to retire or claim benefits, the non-working spouse must wait before claiming benefits.

There is no backpay based on claiming a little later, and the spousal benefit does not grow beyond 67. In other words, there is no incentive for a non-working spouse to wait past 67 to collect Social Security.

Although delaying after 67 will not boost the spousal benefit, it can boost the benefit checks for the working spouse. Each additional year increases the working spouse’s Social Security benefit, which will ultimately give the couple more financial flexibility.

The survivor benefit is the big lever

One key detail when planning out the claiming window is the survivor benefit. The surviving spouse can get up to 100% of the worker’s benefit. Not only does that incentivize the working spouse to wait a little longer, but the compound growth that takes place while waiting until age 70 will result in a higher survivor benefit for the non-working spouse.

Of course, this assumes that the non-working spouse is the survivor. While it’s impossible to predict which spouse will be the survivor, keeping the survivor benefit in mind will provide the non-working spouse with an extra layer of financial protection.

Review your Social Security details

Both spouses should create “my Social Security” accounts and check estimates. That way, they can map out the most optimal time to claim benefits that align with their finances. It’s best to discuss this together and establish goals instead of brainstorming separately.

But keep in mind that the exact time at which spouses should claim Social Security will vary from one couple to another. If you can, it’s best to speak with a financial advisor who can help you determine what makes sense for you based on factors such as your retirement account savings, other sources of income, goals and cost of living.

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