My wife and I are 60 years old (just turned in March and February respectively in 2019). our SSC benefits at 62, and FRA are as follows: 62: wife = $1,069; myself = $2,137; FRA: wife = $1,520; myself = $3,040. Can my wife claim her benefit at 62 of $1,069 and when I retire at FRA claim half my benefit ($1,520) as a spousal benefit at 66 years and 10 months. In other words her SSC benefit will increase from her workers benefit to a spousal benefit? She is working part time now and earns about $15,000 as a RN working a few hours a week. Is there anything wrong with this approach?

Hi,

No. Whenever your wife files for her own benefits she'll be deemed to also be filing for spousal benefits. If you're not yet drawing your benefits when she files for her benefits, she'll be deemed to have filed for spousal benefits effective with your first month of entitlement to benefits. And, if your wife files for benefits prior to her full retirement age (FRA), her benefits will be reduced for age.

In your wife's case, though, it doesn't appear as though she'd ever be eligible for much if any spousal benefits. That's because her unreduced spousal benefit rate (if any) would be calculated by subtracting her full retirement age rate, or primary insurance amount (PIA), from 50% of your PIA. That's true even if she files for her own benefits at age 62. And, based on your figures, that amount would be zero (i.e. $3040/2 - $1520).

Let's say for example, though, that your PIA does end up to be more than twice as much as your wife's PIA. Here's how her benefits would be calculated if she files at age 62. Her retirement benefits would be reduced by roughly 29%. So, if her full retirement age rate (PIA) was $1520, her age 62 rate would be roughly $1069 as stated in your question. Your wife would continue to get that reduced benefit even if she later qualifies for additional spousal benefits. For example, if your PIA was $3050 and you filed for your benefits when your wife is FRA or older, her spousal rate would be $5 (i.e. $3050/2 - $1520). That amount would then be added to her reduced retirement rate to give her a combined benefit of $1074 (i.e. $1069 + $5).

You and your wife may want to strongly consider using our software to explore and compare all of your options in order to determine the best overall strategy for claiming your benefits.

Best, Jerry