In 2015, Congress passed the Budget Reconciliation Act, which eliminated a few common loopholes used to get retirement-age couples additional spousal benefits. However, if you’re between the ages of 68 and 70, some of these strategies may still apply! On this episode, I’ll break down these strategies and help you take advantage of the free money available to you.

You will want to hear this episode if you are interested in...

• Am I eligible for spousal benefits? [2:44]
• Applying for spousal benefits [5:46] 
• Is a spousal benefit strategy right for you? [7:26]
• Additional social security benefit strategies [9:53]
• How to switch from spousal to retirement benefits [11:46]

Spousal benefit eligibility

The Budget Reconciliation Act of 2015 ensured that anyone born after January 2nd, 1954 could no longer delay a social security retirement benefit, in lieu of collecting a spousal benefit as a result of a partner collecting their full retirement benefits. Thankfully, if you were born before that date, are younger than 70, and have not begun collecting social security benefits, you're still eligible to take advantage of this retirement strategy.

Delaying Social Security benefits until the age of 70 (if possible) is one of my top retirement strategies. The Social Security Administration rewards those who wait with roughly 132% more benefits than those who retire right at 67. One of the things that can make that wait easier is both spouses having an income. If one spouse receives their Social Security retirement benefits, the other can apply for the spousal benefit. They receive exactly half of the retired spouses' benefit until they receive their full retirement benefits at age 70.

Making it work for you

What about divorced couples? If you were married for at least ten years, ex-spouses can still receive a spousal benefit. You only have to know that your former partner is receiving retirement benefits. However, not everyone is on good terms with their ex. As long as you have been divorced for at least two years, you can apply for the spousal benefit whether they are collecting their retirement benefits or not.

Applying for the spousal benefit is as easy as applying for regular Social Security. The best way to do it is to file a restricted application through the SSA website listed below. The only potentially tricky part is signifying that the application is restricted. This is done by answering “Yes” to whether or not you would like to delay retirement benefits if you are also eligible for spousal benefits. If you filed for retirement benefits in the last twelve months and want to change to spousal benefits, it's not too late! You would need to withdraw your application, repay the benefits already received, and refile the restricted application. Listen to this episode for more spousal benefit loopholes!

Resources Mentioned

• The United States Social Security Administration

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