Nonworking spouses get Social Security, too

By Alan Clendenning
Associated Press

Q. My wife moved here from overseas, and hasn't worked enough to qualify for Social Security retirement payments. Since she's raising our children and might not work again for a long time, will she be eligible for government retirement programs?

A. Even if your wife never works again, she'll qualify for 50 percent of your Social Security payments when she reaches the age where she qualifies for a maximum retirement benefit.

She must be a U.S. citizen or lawful resident alien. She'll also qualify for Medicare health insurance.

Your wife will receive the spousal Social Security benefit as long as you are still alive. If you die first, she'll stop receiving her benefit but will get your full benefit.

Many people don't realize that nonworking spouses are eligible for Social Security payments until they speak with a financial expert, said Robert Tull, a financial planner and president of R.W. Tull & Associates in Chesapeake, Va.

Most of those who end up qualifying for the spousal benefit are mothers who leave the work force to stay home with their kids, Tull said.

Tull advises clients who don't qualify for their own Social Security benefit payments to do some research and find out if it would be worth it to go back to work to become eligible.

To qualify, workers need 40 "credits," or 10 years of work. Each quarter worked in a year earns a credit. Many times, people who don't qualify for Social Security are only a few credits short of becoming eligible.

It's relatively easy to rack up the credits to qualify for benefits because the minimum amount you must earn to receive a credit is $870 per quarter, or $3,480 for the year.

"If a person has not been out in the work force for many years, it can be very attractive to go back to part-time or seasonal work to get the dollar amount in and get the credits," said Richard Kolck, a financial planner and owner of Richard Kolck & Co., in Dubuque, Iowa.

In cases where the spouse has worked and qualifies for Social Security but would get more under the spousal benefit, the government makes up the difference so the recipient gets the higher amount.

It's important to determine your Social Security payments long before retirement. The government now sends everyone a yearly statement estimating retirement benefits and saying how many credits have been earned.

But don't rely on Social Security alone for retirement benefits. Most financial advisers say you'll need at least 70 percent of your pre-retirement earnings to comfortably maintain your pre-retirement standard of living.

If you have average earnings, your Social Security retirement benefits will replace only about 40 percent, the government says.

"I always say there's three legs to the retirement stool: Social Security, your pension and your own personal savings," Tull said.