The Spousal Benefit That Triples a Stay-at-Home Parent's Social Security to $1,400 a Month at 67

"The Social Security spousal benefit lets a lower-earning partner receive the greater of two amounts: her own benefit, or up to 50% of the higher earner's full retirement age benefit. Social Security simply pays the higher of the two amounts, not both stacked together. In this scenario, half of $2,800 is $1,400. That's more than three times her own $400 benefit. Once she claims at her FRA of 67, the $400 figure essentially disappears from the conversation. Her monthly check is $1,400, and the household goes from collecting $2,800 to $4,200 a month from Social Security."

"How a $400 Benefit Becomes a $1,400 Benefit The Social Security spousal benefit lets a lower-earning partner receive the greater of two amounts: her own benefit, or up to 50% of the higher earner's full retirement age benefit. Social Security simply pays the higher of the two amounts, not both stacked together. In this scenario, half of $2,800 is $1,400. That's more than three times her own $400 benefit. Once she claims at her FRA of 67, the $400 figure essentially disappears from the conversation."

"Two mechanics drive the outcome: The higher earner has to actually be claiming. The lower-earning spouse cannot collect a spousal benefit on a record that has not yet been activated. The old file-and-suspend workaround was closed by Social Security after 2016 for almost everyone, so the working spouse needs to be drawing benefits before the spousal payment can begin. Spousal benefits don't grow past FRA. Delayed retirement credits, the 8% per year boost that rewards wait"

A lower-earning spouse may see a small personal Social Security estimate, but spousal benefits can replace that amount with a higher payment. The spousal benefit pays the greater of the spouse’s own benefit or up to 50% of the higher earner’s full retirement age benefit, rather than stacking both. If the higher earner’s full retirement age benefit is $2,800, half equals $1,400, which can exceed a spouse’s $400 estimate by more than $1,000 per month. The higher earner must be claiming for the spousal benefit to start, and spousal benefits do not increase beyond full retirement age.

Read at 24/7 Wall St.