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CHAPTER 3
SOCIAL SECURITY
a lot more than a 3% increase on $750 (dollar
amounts are from the below example).
Till Death Do Us Part - Spousal
Benefits
Spousal benefits are often overlooked and
misunderstood but can be beneficial for
some couples. In 1939, spousal benefits
(along with others) were added to the
social security system. At the time, most
families had one working spouse and one
stay-at-home parent. Our country's leaders
realized that the stay-at-home spouse
provided a significant benefit to society by
raising children and wanted to make sure
they were not left out. That is why we have
spousal benefits.
Spousal benefits allow you to receive an
amount up to half of what your spouse is
receiving without reducing what your
spouse gets. It essentially allows you to get
the higher of your benefit or half of your
spouse's as long as you and your spouse
have been married for one year or more and
your spouse has already filed for benefits.
Let's take a look at a specific example
(on the next page) of how this can
work. Jane and Joe Jones are a married
couple. Jane was a professor at a local
university, and Joe stayed home to raise
the kids but also worked as a substitute
teacher. Since Jane's wages were higher
than Joe's, her benefit is also higher.
Jane is entitled to $2,500/month at FRA
and Joe $700/month. Since half of Jane's
benefit is more than Joe's full benefit,
Joe would draw $1,250/month (half of
Jane's benefit) rather than $700 (his own
benefit).
Cost of Living Adjustments to Social Security Benefits
3.5
1997 2.1
1985
1984
3.1 1998 1.3
1986 1.3 1999 2.5
1987 4.2 2000 3.5
1988 4.0 2001 2.6
1989 4.7 2002 1.4
1990 5.4 2003 2.1
1991 3.7 2004 2.7
1992 3.0 2005 4.1
1993
1995 2008
2.6
2.6 5.8
2006 3.3
1994
1996
2.8
2.9
2007
2009
2.3
0.0
2010 0.0
2011 3.6
2012 1.7
2013 1.5
2014 1.7
2015 0.0
2016 0.3
2017 2.0
2018 2.8
2019 1.6
2020
2022
2021
2023
1.3
8.7
5.9
3.2
1. Chart above: Source: https://www.ssa.gov/oact/cola/colaseries.html
