I am 60 and my wife is 58. We have two children, one who was determined to be disabled as a minor by Social Security. For my age group, I believe file and suspend is gone. I would like to wait until age 70 to start drawing my SS benefit so that my son will accumulate a larger benefit for his life once I begin to draw my SS benefit and also after I die. My question, can my wife draw her own benefit at 62 and not change the above scenario? If she can, could she then convert to 1/2 my benefit when I turn 70, or is this also not allowed when they stopped the file and suspend approach?

Hi,

First of all, when you start drawing your benefits would have no bearing on the benefit rate that your child(ren) could potentially receive from your record. While you're living, a child who qualifies for benefits on your record could be paid a maximum of 50% of your full retirement age rate (PIA) whether you file at age 62 or age 70 or anytime in between. And, survivor benefits for a child top out at 75% of the deceased parent's PIA regardless of when, or whether or not, the parent filed for their retirement benefits.

If your wife files for her benefits at age 62 she will be deemed to have also filed for spousal benefits as soon as she could qualify for those benefits (https://www.ssa.gov/planners/retire/claiming.html?intcmp=AE-RET-PLRT-REL...). And, she couldn't stop drawing her own benefits and receive spousal benefits instead. Therefore, when you start drawing your benefits if 50% of your PIA is higher than your wife's PIA she could be paid her own benefit rate plus a partial spousal rate from your record, and each of those benefits would be reduced for age if she starts drawing them prior to her full retirement age (FRA).

For example, say Jane has a PIA of $500 but files at age 62 and receives a reduced rate of $350. If Jane's husband files for his benefits after Jane reaches FRA, Jane's spousal rate would be calculated by subtracting her PIA from 50% of her husband's PIA. So, if Jane's husband's PIA was $2000 for example, Jane's spousal benefit would be $500 (i.e. $2000/2 - $500). That would then be paid in addition to Jane's own reduced benefit of $350, leaving her with a combined rate of $850.

If you do wait until age 70 to start drawing your benefits that would almost certainly benefit your wife if you die before her. Unreduced widow's benefits are calculated based on 100% of the deceased spouse's benefit rate, including any delayed retirement credits that the deceased earned by waiting past FRA to start drawing their benefits.

If your wife files for her benefits before you file for your benefits then your child(ren) could potentially qualify for child's benefits on her record. You might also be able to qualify for child in care spousal benefits on her record in that event, but there is a family maximum benefit (https://www.ssa.gov/OACT/COLA/familymax.html) that would likely limit the amount that you and your children could be paid. Your child(ren) could then potentially switch to your record when you file for your benefits if your PIA is higher than your wife's PIA.

You and your wife will have numerous potential filing options available to you, so you should strongly consider using our maximization software to explore and compare all of your options in order to determine the filing strategy that's most likely to be optimal for you and your family.

Best, Jerry