A recent survey conducted by MassMutual reveals that a significant portion of Americans nearing retirement are unaware that divorced individuals can collect Social Security benefits based on their ex-spouse’s earnings.
In fact, these benefits can amount to as much as 50% of the ex-spouse’s Social Security benefits, provided certain conditions are met.
Advantages of Social Security for Divorced Partners
Understanding the eligibility requirements and how these benefits are calculated is crucial for divorced individuals seeking to maximize their Social Security entitlements.
Eligibility Requirements for Social Security Benefits for Divorced Spouses: To qualify for Social Security benefits as a divorced spouse, several requirements must be met:
- You must be at least 62 years old to qualify.
- Marital Status: You must be unmarried, although you may still qualify if your recent marriage ends in annulment, divorce, or death.
- Ex-Spouse’s Eligibility: Your ex-spouse must be eligible for Social Security benefits.
- Duration of Marriage: The marriage must have lasted at least 10 years.
- Divorce Duration: You must have been divorced for at least two years.
- Comparison of Benefits: Your own Social Security benefit must be less than the divorced spouse’s benefit.
Calculating Social Security Benefits for Divorced Spouses: The amount of Social Security benefits for divorced spouses is primarily determined by your own income and the benefits your ex-spouse is entitled to.
The maximum benefit you can receive is 50% of your ex-spouse’s benefit at full retirement age (FRA).
However, to receive the full benefit, you will have to wait until your own FRA.
If you claim the divorce benefit before your FRA, the benefit amount will be reduced. The FRA generally ranges from 66 to 67, depending on your birth year.
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Unveiling Divorced Spouses’ Entitlements
Claiming benefits before reaching FRA may result in a reduction of up to 30% by the Social Security Administration (SSA).
If you are entitled to Social Security benefits based on your own work record, you will receive the higher of the two possible benefits, not both.
If your own benefit is lower than your ex-spouse’s, you will receive a combination of your own benefit and a portion of your ex-spouse’s benefit, making the total equal to half of your ex-spouse’s benefit.
For instance, if your work history qualifies you for $1,000 in Social Security benefits each month but your ex-spouse receives $2,500, you would be eligible for $1,250 in divorce benefits.
This includes your $1,000 benefit and an additional $250 from your ex-spouse’s benefits to reach half of their monthly benefit amount.
No Impact on Ex-Spouse’s or Current Spouse’s Benefits: Importantly, claiming divorced benefits will not affect the benefits received by your ex-spouse or their current spouse if they remarry.
The divorced benefits are separate and do not impact the benefits entitled to them or their current spouse.
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