Will Marriage Impact Your Social Security? Suze Orman Breaks It Down

Marriage brings plenty of questions – especially about finances. For those marrying later in life, like Maria from Suze Orman's Women & Money podcast, a big question is how marriage will impact their Social Security benefits. 

Here's what Suze Orman and the Social Security Administration say about how tying the knot might impact your retirement income.

Marriage alone doesn't change the amount of Social Security benefits you receive based on your work record. When Maria asked whether she'd receive more or less benefits if she got married, Orman simply responded, "Has nothing to do with it." She added that getting married can, however, open up opportunities for spousal and survivor benefits.

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Spousal benefits allow you to collect up to 50% of your spouse's Social Security benefit if that amount is higher than the benefit you would receive based on your earnings. For example, if your spouse's monthly benefit is $2,000, you may qualify for up to $1,000. However, this option is only available if your spouse has already filed for benefits.

If your spouse passes away, you may also be eligible to receive survivor benefits, which can amount to 100% of their Social Security payment. This makes marriage particularly beneficial for individuals whose spouses earn significantly more.

While marriage doesn't reduce your Social Security benefits, the timing of when you claim them does. According to the Social Security Administration, you can start collecting benefits as early as age 62, but doing so will permanently reduce your monthly amount – by up to 30%. Conversely, waiting until age 70 maximizes your monthly payment, offering up to 77% more than if you claimed at the earliest opportunity.

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For couples, delaying Social Security can create a larger benefit for the higher-earning spouse, which could be advantageous if survivor benefits come into play later.

To qualify for spousal benefits, you must be 62 or caring for a child under 16 or with disabilities. Additionally, the spousal benefit will be reduced if you claim before reaching full retirement age, which is 67 for those born in 1960 or later.

Orman emphasizes that marriage shouldn't be based solely on financial benefits. While there are advantages like spousal and survivor benefits, estate tax exemptions and other legal benefits, she encourages listeners to focus on whether they genuinely want to spend their lives with their partner.

"I won’t be worried about your Social Security," Orman said. "I would want you to know that you liked and loved whoever this person was and wanted to spend the rest of your life with them." 

Marriage doesn't automatically reduce Social Security benefits, but it opens the door to additional spousal and survivor benefits that can enhance retirement income. To determine the best course of action, consult a financial advisor or Social Security expert. Planning ensures you and your partner make informed decisions for your future.

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