Hi Larry, I’m 58 and plan to retire at 70 or later. My wife is 61 and will be eligible to receive some benefits obviously next year at 62. My wife has not worked on a job very much and would only receive $237.00 or so a month. Can she retire at 62 and get that money and later get half of what I make when I retire? Or should she wait until I retire? We’re not sure how this works. Thanks Larry

Hi. No. Your wife is free to start drawing her own benefits as early as age 62, but she'll be stuck with the resulting reduction in her own rate for as long as both of you are living.

Here's an example to illustrate: Let's say Mary files for her Social Security retirement benefits at age 62. Mary's primary insurance amount (PIA) is $400, but Mary's benefit rate is reduced for age to $281. A person's PIA is the amount they'd receive if they start drawing their benefits at full retirement age (FRA). Several years later when Mary's husband applies for his benefits, Mary applies for spousal benefits. Mary's spouse's PIA is $2000, so Mary's unreduced excess spousal benefit would then be calculated by subtracting her PIA from 50% of her husband's PIA In Mary's case that would amount to $600 (i.e. $2000/2 - $400). If Mary is at least full retirement age (FRA) when she becomes eligible for the spousal benefit, she would then be paid the unreduced excess spousal amount of $600 in addition to her own reduced rate of $281 to give her a combined rate of $881. But, if Mary becomes eligible for spousal benefits prior to FRA, her spousal rate would also be reduced for age.

It sounds like you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry