"Wait… My Wife Can Get Social Security Too?"

Too many advisors focus only on the assets they manage and ignore the broader picture that actually determines a family's long-term financial security — especially when it involves cross-border benefits.

The morning after a heartbreak of a lifetime (a Game 7 World Series loss for my beloved Blue Jays), I found myself in an airport lounge chatting with a former Blue Jays player from the 1992–1993 championship roster. What started as easy small talk turned into a full hour of cross-border financial planning.

When Social Security came up, I mentioned something that stopped them both mid-sentence: his wife may qualify for U.S. spousal Social Security benefits.

He blinked. "She can what?"

What are spousal Social Security benefits?

Spousal benefits allow a husband, wife, or common-law partner to receive up to 50% of their spouse's full retirement benefit (the Primary Insurance Amount, or PIA), provided certain conditions are met.

They're designed to support uneven-earner households so a lower-earning spouse isn't penalized for time spent caregiving or working part-time.

The basics

• The amount: A spouse can receive up to 50% of the higher earner's benefit at their own full retirement age (typically 67).
• The age: They can claim as early as age 62, but doing so reduces the monthly amount.
• The trigger: The higher-earning spouse must have filed for their own benefit before the spouse can claim.
• The limit: Spousal benefits do not increase past full retirement age (unlike personal benefits, which earn delayed credits until age 70).

Do these rules apply to Canadians living in Canada?

Yes. In many cases, payments can be made directly to beneficiaries living in Canada with no requirement to reside in the U.S.

• If you worked in the U.S. for 10+ years: Your spouse in Canada may be eligible even if they never lived or worked in the U.S.
• If you lack enough credits: The U.S.–Canada Totalization Agreement can help combine your CPP/QPP contributions with U.S. credits to establish eligibility.

Key nuances for Canadians

1. Currency risk

Benefits are paid in USD. If your spending is in CAD, exchange-rate swings will affect your net income.

2. Taxation differences

Unlike CPP or OAS, Social Security is taxed specifically under the treaty:

• The U.S. may tax a portion first (depending on your tax-filer status).
• Canada includes 85% of the benefit as taxable income on your Canadian return, using a foreign tax credit to avoid double taxation.

3. You don't get both

You cannot claim both a spousal benefit and an individual benefit from your own work history at the same time. You receive the higher of the two.

4. The WEP abolishment

As of January 2025, the Windfall Elimination Provision (which previously reduced Social Security for those with foreign pensions like CPP) has been abolished. This is a massive win for cross-border retirees.

Why advisors miss this

• Lack of specialized training: Cross-border rules are complex and outside the scope of many standard financial planners.
• Asset-only focus: If an advisor only bills on managed assets, "external" benefits like Social Security often fall through the cracks.
• The "unknown unknowns": If your advisor doesn't raise the topic, you may never know you're leaving hundreds of thousands of dollars on the table.

Key takeaways for cross-border families

If you or your spouse ever worked in the U.S., you need to ask:

• Are we eligible for U.S. Social Security?
• Does the Totalization Agreement help us qualify?
• What is the optimal claiming age to maximize after-tax cash flow?
• How will survivor benefits (up to 100% of the deceased spouse's benefit) shape our long-term plan?

If this seems above your paygrade, seek out a professional with specific cross-border expertise. Book a complimentary consultation today to discuss your situation.