AT AGE 70, I PLAN TO FILE FOR SOCIAL SECURITY BENEFITS IN AUGUST OF 2018. MY WIFE WHO WAS BORN IN DEC. 1952 WILL REACH HER FULL RETIREMENT AGE OF 66 IN DEC. 2018. AT THAT TIME, SHE PLANS TO APPLY FOR A SPOUSAL BENEFIT FOR 50% OF MY BENEFIT. SHE PLANS TO DELAY HER OWN BENEFIT UNTIL SHE REACHES AGE 70 & THEN SHE WILL SWITCH OVER TO HER OWN BENEFIT. SINCE SHE HAD TURNED 62 BEFORE 1/01/16, IS IT STILL LEGAL FOR HER TO DO THIS? ALSO, WILL HER 50% SPOUSAL BENEFIT AMOUNT INCLUDE THE DELAYED RETIREMENT CREDITS THAT I HAVE EARNED & ANY COLA INCREASES THAT I HAVE RECEIVED? FOR EXAMPLE, AT AGE 70 MY MONTHLY BENEFIT AMOUNT INCLUDING DRC'S & COLA'S IS ESTIMATED TO BE APPROXIMATELY $2800 PER MONTH. WILL HER SPOUSAL BENEFIT BE $1400 PER MONTH?

THANK YOU!

Hi,

Yes, your wife was grandfathered under the new law passed by Congress last year (https://www.ssa.gov/planners/retire/deemedfaq.html), so she can file just for spousal benefits when she reaches age 66, then switch to her own record (assuming it's higher than the spousal amount) at age 70.

Her spousal benefit is based on 50% of your full retirement age benefit amount (PIA), not your age 70 amount that includes delayed retirement credits. So, if your age 70 monthly rate is $2800, her spousal benefit would be more like $1060 per month (i.e. $2800/1.32/2). Your PIA is adjusted for cost of living increases (COLA) starting with the year you reached age 62, so her spousal benefit will include COLAs.

Best, Jerry