Many Americans are unaware that Social Security benefits extend beyond retirement. While the program is well-known for supporting retirees, millions of people who are not yet retired are currently receiving Social Security payments, tapping into benefits such as spousal and survivor benefits, disability benefits, and even payments to children.
Social Security’s scope
Social Security is not exclusively a retirement benefit. Children, spouses (including divorced spouses), and individuals with disabilities can all qualify for payments under certain circumstances. As of August 2024, more than 5.5 million Americans receive survivor benefits and an additional 2.5 million benefit from spousal Social Security checks.
These payments can be a crucial lifeline for families, allowing people to access needed funds well before reaching retirement age. However, understanding the eligibility criteria and how much one is entitled to receive can be challenging due to the program’s complexities.
Spousal and survivor benefits
For spouses, the eligibility for benefits begins at age 62, provided the individual hasn’t paid into the Social Security system for 30 years or more, or if the spouse’s benefit is higher. The key point to note is that the maximum spousal benefit is 50% of the spouse’s full retirement benefit.
In cases where a person qualifies for survivor benefits—such as after the death of a spouse—the eligibility starts at age 60 (or 50 if the person is disabled). In these situations, a surviving spouse can receive 100% of the deceased person’s Social Security benefit if they wait until the full retirement age of 67.
Interestingly, even ex-spouses are eligible to claim survivor benefits if the marriage lasted for at least 10 years. Children, both under 18 and disabled children of any age, are also entitled to these benefits. Additionally, divorced spouses can claim spousal benefits, provided they meet certain conditions.
When to claim your Social Security benefits
Determining the best time to claim Social Security benefits is not as straightforward as it seems. Deciding to collect early—starting at age 62—means accepting reduced payments, while waiting until full retirement age (66-67, depending on the year of birth) or even up to age 70 can increase monthly payouts. Specifically, delaying benefits results in an 8% increase per year after full retirement age.
However, for those who cannot or do not want to delay, spousal and survivor benefits offer opportunities to access funds earlier. In particular, if you are balancing work with collecting Social Security benefits before full retirement age, the income limits for 2024 have been increased to $22,320 before any reductions are applied to your benefits.
Why it’s important to do your research
Many people mistakenly overestimate how much they will receive or underestimate when to claim. For instance, starting benefits early can reduce monthly checks—potentially leaving people with less than expected.
With 70 million Americans projected to receive Social Security benefits by 2025, it’s important to plan ahead and maximize what you’re entitled to. Taking the time to research and understand the program’s nuances—such as the earnings limit for early claimants or how divorce and remarriage impact eligibility—will help ensure you’re not leaving money on the table
