Title: Mastering Social Security: Secure Your Benefits without a Single Day of Work
Title: Mastering Social Security: Secure Your Benefits without a Single Day of Work
Retiring with Social Security benefits can be simpler than you think, but there are nuances to this process. Generally, you need to work and pay taxes on your income, collect at least 40 work credits throughout your life, and choose when to claim benefits starting at age 62. But here are some lesser-known ways to qualify for Social Security in retirement without ever having worked a day:
1. Spousal benefits
Social Security extends its benefits to more than just older Americans who've worked and paid into the system. Spouses, ex-spouses, and sometimes long-term partners can also claim benefits.
If your spouse or ex-spouse is entitled to Social Security benefits, you could be eligible for spousal benefits worth up to 50% of what your spouse receives at their full retirement age. However, there are some stipulations:
- You can't claim spousal benefits before your spouse files for Social Security.
- You can't delay a spousal benefit for a boost; that's an option only for claiming benefits based on your own earnings record.
- If you apply for spousal benefits before reaching your full retirement age, your payout will be lower.
Ex-spouses also have an advantage. You don't have to wait until your ex-spouse files for Social Security to collect spousal benefits; you just need to be divorced for at least two years.
2. Survivor benefits
If your spouse gets Social Security benefits and passes away, you may be eligible for survivor benefits totaling up to 100% of their monthly payment. Keep in mind that to receive the maximum survivor benefit, you'll need to wait until your full retirement age.
If you claim survivor benefits before reaching your full retirement age, your payments will be reduced, but they could still be substantial. Even divorced spouses who were married for at least 10 years may qualify for survivor benefits from Social Security.
Claiming benefits with little or no work history
While you can leverage spousal and survivor benefits as sources of income, what if you've only worked part-time or haven't worked enough to have an earnings history?
This year, earning just $7,240 in a single year qualifies you for four work credits. So even with minimal part-time work, you might still be eligible for some Social Security benefits in retirement. Of course, the amount you receive will likely be modest, but at least you'll know if you have any entitlement to Social Security on your own.
If you're married and eligible for a small benefit, you can start by claiming your own Social Security first, collecting any money due, and then transitioning to a larger spousal benefit once your partner files for retirement. This strategy might help increase your overall retirement income.
Before diving further into retirement planning, it's crucial to create an account on the Social Security Administration's website to ensure you're aware of any benefits you might be entitled to.
- Even if you haven't worked enough to have a significant earnings history, you might still be eligible for some Social Security benefits during retirement, as earning $7,240 in a single year this year can help you gain four work credits.
- If you're not entitled to a substantial Social Security benefit based on your own earnings record, you can still explore the option of claiming spousal benefits, which can be up to 50% of your spouse's benefits at their full retirement age, provided they are already receiving their benefits.