Larry, I will be 70 in June 2016. Recently my wife and I went to the local Social Security office and I completed the paperwork to start drawing my Social Security the month I turn 70. My wife was born January 1, 1952 and turned 64 on January 1, 2016. I know that she can draw one-half of my social security once I start drawing. However, we would like for her to draw one-half of mine until she turns 70, allowing her benefit to grow, then draw on her own benefit at 70. According to the information provided by the SS statement received by mail, her benefit at full retirement age (which I think for her is 66 1/2) would be approx. $1,700/mo. While at the Social Security office we asked what her benefit would be if she started drawing one-half of mine once I start drawing in June 2016. The SS representative told us that my wife would only receive $1,100/month if she draws on one-half of mine once I start drawing in June 2016. This doesn't sound correct as one-half of $3,500 would be approx. $1,750/month. Question: Does she have to wait until full retirement age before drawing on one-half of mine in order to preserve her right to later file on her own benefit? My wife is fully retired and we don't expect her to generate additional income from working in the future. She does not plan to file for any Social Security benefits until the future consequences are known. Also, how do we challenge a figure provided by the Social Security employee that appears to be incorrect? Also, she has a small $900/mo state retirement check that she is already collecting. She paid in to Social Security while employed by the state. Would that have any effect on her SS benefit?
Thanks, Tom

Hi Tom,

I'll address your questions in order:

Yes, your wife must wait until her full retirement age (FRA), which is 66, to apply for spousal benefits only while preserving her right to apply on her own account later. In all likelihood, that's exactly what she should do, and the optimal time for her to switch to her own account is almost certainly at age 70, when it will be 32% higher than at FRA.

When your wife reaches age 66, her spousal benefit will be one-half of your full retirement age benefit (PIA), not one-half of your benefit amount inclusive of delayed retirement credits (DRC). If your age 70 benefit amount is around $3500, your PIA must be about $2650, which would make your wife's spousal benefit about $1325 at age 66. Thus, the $1100 figure quoted by the Social Security rep would be the approximate reduced spousal benefit at age 64, but she wouldn't really get that if she applied now.

If your wife files for spousal benefits before FRA, she would be deemed to also be applying for reduced benefits on her own account, which would result in her getting only reduced benefits on her own record since that's higher than one-half of your PIA. Obviously, she doesn't want to do that.

And, as long as your wife paid Social Security taxes on her earnings from her employment with the state, her state pension will have no effect on either her spousal benefit, nor the benefits payable on her own account.

Best, Jerry