Divorce in Retirement and Social Security Benefits

The years leading up to retirement may be full of anticipation. You might look forward to long road trips and white sandy beaches while expecting retirement income and Social Security checks to cover day-to-day expenses. One reality that may catch you off guard, however, is divorce. Each year, many retired couples agree to separate and divorce. When this occurs, questions arise regarding the allocation of retirement benefits, especially Social Security spousal benefits. If you are entering the era of retirement and divorce seems like a possibility, take time to learn about the benefits that will be available to you and your soon-to-be ex-spouse. In an effort to clarify a complex topic, let’s review the ages at which partial and full retirement benefits begin and then expound on what this means for divorcees of different ages and dissimilar earning levels. (Much of the information presented in this article is adapted from ssa.gov.)

Social Security Retirement Benefits – By Age

A taxpayer can begin receiving partial Social Security benefits at age 62. However, full retirement benefits kick in at age 67 for most people. (Those born between years 1938 and 1959 may need to check a sliding scale to see exactly when they qualify for full benefits. It will be between the ages of 65 and 67.)

Also, at age 62 a person can begin collecting partial spousal benefits based upon the Social Security earnings of a taxpaying spouse or ex-spouse who is 62 years or older. The full amount of spousal benefits (which takes effect at full retirement age) is 50 percent of what the primary earner receives. This is the same whether you are married or divorced and eligible to receive benefits.

What Qualifies An Ex-spouse For Benefits?

An individual may apply for spousal benefits if the marriage lasted more than 10 years, if he or she is unmarried, and if his or her full retirement benefits are less than 50 percent of the ex-spouse’s benefits. While spousal benefits are not available to a spouse who remarries, if the later marriage ends in death or divorce, he or she may be able to file for retirement benefits based on the earnings of his or her first spouse. Taxpaying individuals who also qualify for spousal benefits will receive their personal retirement benefits first. Should an ex-spouse’s retirement benefits be of greater value, however, the individual may receive a combination of the benefits, which will equate to the higher benefit amount. Once full retirement age is reached, the individual will need to choose whether to collect personal retirement benefits or spousal benefits. In addition, if you have been divorced for at least two years, upon reaching age 62, as an eligible former spouse, you can claim spousal benefits based on benefits  accrued by a taxpaying ex-spouse who is also of retirement age, even if he or she has not filed for Social Security benefits yet. According to the Social Security Administration website, the amount of retirement benefits claimed by an ex-spouse has no impact on your Social Security benefits or those of your current spouse. (Find a complete list of the Social Security Administration’s spousal benefit qualifications at this government website: http://www.ssa.gov/retire2/yourdivspouse.htm.)

How Do Earning Levels Effect Spousal Benefits?

Information about spousal benefits can come as a relief to a divorced couple who has disparities in their earning levels. For instance, if one spouse was the primary earner while the other spouse did not work or did not accrue Social Security benefits, then each party can rest assured knowing they will both receive retirement benefits. When approaching life’s “golden years,” it is important to know that you will have the money you expected to fulfill the plans you’ve made for retirement. A later-in-life divorce does not need to disrupt these plans. Learn more about what you and your ex-spouse are entitled to by fully understanding your Social Security retirement benefits.
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