When most people think about Social Security, they normally think of retirement benefits. But about 1/5 of all Social Security benefits are spousal or survivor benefits, therefore when you are planning for retirement, it is important to consider the fact that you or your spouse might get Social Security survivor benefits or spousal benefits at some points in their life.

Here, we're gonna talk about the fundamentals of Social Security spousal benefits.

Basically, a married person can get a spousal benefit equal to half of her husband's basic benefit, also labeled the PIA (primary insurance amount).

Social Security spouse benefits usually come into play when a spouse takes time away from work to raise a family, and thus has very little or no income.

Calculating the Spousal Benefit:

The spousal benefit is in fact a combination of both spouses' benefits. If a married person has enough credits to qualify for Social Security on her own, then her credit will be figured first. If it is less than her spouse's benefit, she will get her benefit together with an adjustment to equal half of her husband's primary benefit.

When you should Begin the Spousal Benefit:

You could apply for the spousal benefit as early as age 62, as long as the working or higher earning spouse is eligible and has applied for benefits.

It does not good for the lower earning spouse to wait beyond her complete retirement age to apply for spousal benefits because the spousal benefit won't earn credits beyond the complete retirement age. Thus, spouses applying for the spousal benefit must do so when they reach full retirement age.

How Early Retirement Affects The Spouse Benefit:

Spouses who apply for the spousal benefit before she is complete retirement age will get a reduced benefit just like she would if she applied for her own Social Security benefit before complete retirement age. This reduced benefit is permanent, even though she takes her spousal benefit at the age of 62 and switches to her own benefit at complete retirement age.

Some other Considerations:

Individuals who begin collecting retirement benefits before complete retirement age can only earn up to a definite amount before they've to pay back part or all of their Social Security benefits. In '09, that amount is $14,160. If you earn higher than $14,160, you need to pay back $1 for every $2 you earned over the limit.

This earnings test applies to spousal and survivor benefits and also retirement benefits, so if you expect to work before you reach complete retirement age, you should delay your retirement and spousal benefits.

In this article, I've referred to the wife as the lower earning spouse out of convenience. But, in today's world, it is not uncommon for the wife to be the higher earning spouse. The great news is that Social Security is gender neutral, so the Social Security spouse benefits can apply to the wife or husband, in addition to the higher or lower earning spouse.

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