Yes, both spouses can still work while collecting Social Security benefits. However, there are earnings limits that may affect the amount of Social Security benefits received if income exceeds a certain threshold.
The spousal benefit can be as much as half of the worker's "primary insurance amount," depending on the spouse's age at retirement. If the spouse begins receiving benefits before "normal (or full) retirement age," the spouse will receive a reduced benefit.
Spousal Benefits for Retired Workers
A spouse who has never worked in paid jobs or has not worked to earn sufficient credits to be eligible for his/her own retired worker benefits can receive a spousal benefit that is 50 percent of the eligible worker's full benefit.
When a spouse passes, the SSA pays an eligible surviving spouse a percentage of the deceased's retirement benefits, depending on the deceased's age: If the deceased did not reach full retirement age, the surviving spouse can receive 100% of the retirement benefit.
Spouses and ex-spouses
Payments start at 71.5% of your spouse's benefit and increase the longer you wait to apply. For example, you might get: Over 75% at age 61.
The widow's penalty occurs when a surviving spouse's tax status reverts from married filing jointly to single. If you're a widow or widower, you can file a joint tax return for the year of your spouse's death.
The first exception, which can be deemed as the Social Security spousal benefits loophole, works where an individual who remarries at 60 or later may still be entitled to Social Security survivors' benefits if the second marriage ends before the death of the first spouse.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
If you have since remarried, you can't collect benefits on your former spouse's record unless your later marriage ended by annulment, divorce, or death. Also, if you're entitled to benefits on your own record, your benefit amount must be less than you would receive based on your ex-spouse's work.
However, your maximum spouse's benefit remains 50% of their full retirement age benefit, not their higher amount including delayed retirement credits. (Your benefit as a surviving spouse would be based on the higher amount.)
If you've worked and paid taxes into the Social Security system for at least 10 years and have earned a minimum of 40 work credits, you can collect your own benefits as early as age 62.
Key Takeaways
The maximum spousal benefit is 50% of the other spouse's full benefit. You may be eligible if you're married, divorced, or widowed. You can collect spousal benefits as early as age 62, but in most cases, the benefits are permanently reduced if you start collecting before your full retirement age.
To qualify to get $144 added back to your Social Security check, you can enroll in a Medicare Advantage plan that offers a Part B premium reduction or giveback benefit.
Either spouse can maximize their regular Social Security benefit amount by waiting past their full-retirement age to apply, up to age 70. Benefits generally increase 8% each year filing is delayed.
Exactly how much in earnings do you need to get a $3,000 benefit? Well, you just need to have averaged about 70% of the taxable maximum. In our example case, that means that your earnings in 1983 were about $22,000 and increased every year to where they ended at about $100,000 at age 62.
The result is that only one Social Security monthly retirement benefit will be paid to the surviving spouse. That monthly retirement benefit check will be equal to the higher of: (1) The deceased spouse's Social Security monthly retirement benefit; or (2) The surviving spouse's own monthly retirement benefit.
The Bottom Line. A number of situations could put your pension at risk, including underfunding, mismanagement, bankruptcy, and legal exemptions. Laws exist to protect you in such circumstances, but some laws provide better protection than others.
Once you turn 62, you typically qualify for a spouse's Social Security benefit. The spouse's Social Security benefit amount is up to one-half the amount that the wage-earning spouse is eligible to receive at full retirement age.
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
If your spouse is not receiving any retirement benefits yet, then you could technically take your regular Social Security benefit as early as age 62. When your spouse files for their benefit later you could switch to spousal benefits.
Surviving spouse, at full retirement age or older, generally gets 100% of the worker's basic benefit amount. Surviving spouse, age 60 or older, but under full retirement age, gets between 71% and 99% of the worker's basic benefit amount.
The Hindu Widows' Remarriage Act 1856, also Act XV, 1856, passed on 16 July 1856, legalised the remarriage of widows in all jurisdictions of India under East India Company rule. The law was enacted on 26 July 1856.
A widow(er)'s exemption refers to a reduction of tax burdens on a taxpayer following the death of a spouse. State laws vary but generally allow for a reduction in taxes for a surviving spouse for a certain period.