This Could Be the Most Easily Confused Social Security Spousal Benefit Rule -- and It Could Cost You

It's important to claim Social Security spousal benefits at the right time.

Filing too early could hurt you, but so could filing too late.

If you were a lower earner during your career or didn't work enough to qualify for Social Security on your own, you may be entitled to spousal benefits to help cover your costs in retirement. But it's important to know how those benefits work.

Some of the rules of spousal benefits are the same as regular Social Security retirement benefits. For example, the earliest age to claim both is 62. And filing ahead of full retirement age , which is 67 for anyone born in 1960 or later, will result in permanently reduced benefits.

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But spousal benefits can add a layer of complexity when filing for Social Security. And it's important to thoroughly understand one key rule that often gets misunderstood.

When you're claiming Social Security based on your own earnings record, you can accumulate delayed retirement credits for each year you hold off on filing past full retirement age. Those credits are worth 2/3 of 1% for every month you wait, or about 8% per year. And you can accrue them until you reach age 70.

But spousal benefits work differently. Social Security spousal benefits are worth up to 50% of your spouse's primary insurance amount, which is the benefit they're entitled to when they reach full retirement age.