If you’re married or have ever been married, Social Security spousal benefits might seem like a safety net. Many people count on these payments to help cover bills in retirement. But what if the rules quietly changed, and you didn’t notice until it was too late? That’s what’s happening right now. Over the past decade, several small changes have chipped away at social security spousal benefits. These changes don’t make headlines, but they can shrink your monthly check. If you want to protect your retirement income, you need to know what’s different and what you can do about it.
1. The End of File-and-Suspend
For years, couples used a strategy called “file-and-suspend” to boost their social security spousal benefits. One spouse would file for benefits at full retirement age, then immediately suspend them. This allowed the other spouse to claim spousal benefits while the first spouse’s own benefit continued to grow. It was a smart way to get more money out of the system. But in 2016, the government closed this loophole. Now, if you suspend your benefits, your spouse can’t collect spousal benefits during the suspension. This change hit couples who planned to maximize their social security spousal benefits. If you were counting on this strategy, it’s gone. You’ll need to look for other ways to make the most of your benefits.
2. Restricted Application Rules Tightened
The “restricted application” was another way to get more from social security spousal benefits. If you were born before January 2, 1954, you could file a restricted application at full retirement age. This lets you claim only your spousal benefit while your own benefit keeps growing. You could switch to your own higher benefit later. But for anyone born after that date, this option is gone. Now, when you file for benefits, you’re “deemed” to be filing for both your own and your spousal benefit. You get the higher of the two, not both. This change means younger retirees have fewer options to boost their social security spousal benefits. If you’re planning for retirement, you need to know which rules apply to you.
3. Delayed Retirement Credits Don’t Apply to Spousal Benefits
Many people know that waiting to claim social security increases their own benefit. For every year you delay past full retirement age, your benefit grows by about 8% until age 70. But here’s the catch: delayed retirement credits do not increase social security spousal benefits. If your spouse waits until 70 to claim, their own benefit goes up, but your spousal benefit does not. The spousal benefit is always based on your partner’s full retirement age amount, not the higher delayed amount. This surprises a lot of couples. If you were hoping to get a bigger spousal benefit by waiting, it won’t work. You need to plan with this rule in mind.
4. The Government Pension Offset (GPO) Reduces Spousal Benefits
If you worked in a job that didn’t pay into social security—like some teachers, police officers, or government workers—your social security spousal benefits could be cut. The Government Pension Offset (GPO) reduces your spousal benefit by two-thirds of your government pension. For example, if you get a $900 monthly pension from a non-covered job, your spousal benefit could be reduced by $600. In some cases, this wipes out the spousal benefit entirely. Many people don’t realize this until they apply. If you have a government pension, check how the GPO affects your social security spousal benefits.
5. Higher Full Retirement Age Means Lower Spousal Benefits
The full retirement age (FRA) for Social Security has been rising. For people born in 1960 or later, FRA is now 67. This matters for spousal benefits because if you claim before your FRA, your benefit is reduced. The higher the FRA, the longer you have to wait to get the full spousal benefit. If you claim at 62, your spousal benefit could be as little as 32.5% of your spouse’s full benefit, instead of the maximum 50%. As the FRA rises, more people end up with smaller checks because they can’t or don’t want to wait. If you’re planning when to claim, know your FRA and how it affects your social security spousal benefits.
Protecting Your Retirement: What You Can Do Now
Social security spousal benefits are not as generous as they once were. Quiet changes have made it harder to get the most out of the system. But you still have options. Start by learning the rules that apply to you and your spouse. Check your full retirement age. Review your work history to see if the GPO applies to you. Don’t assume you’ll get the same benefits as your parents or neighbors. Social security spousal benefits are complicated, and the rules keep changing. If you’re not sure what to do, talk to a financial advisor who understands the latest rules. Planning ahead can help you avoid surprises and get the most from your benefits.
Have you or someone you know been affected by changes to social security spousal benefits? Share your story or questions in the comments.
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