Hi! My wife is 66, I am 65. If my wife files for SS on her own work record, and I file a restricted application when I become 66, can she switch over to spousal benefits when I finally file for my benefits at age 70? This is so confusing, and I really want to get it right.
Thanks for any help!!

Hi,

She can't switch to spousal benefits, but she can apply for an excess spousal benefit on your record when you apply at age 70. Once a person becomes entitled to benefits on their own record, that becomes their primary benefit for life. If they subsequently become entitled to a different type of benefit (e.g. spousal, widow(er)), that becomes an excess, or supplemental, benefit. The net result is that they basically end up receiving the highest of the 2 types of benefits for which they qualify, but they would always remain entitled on their own record.

So, the plan you describe in your question sounds fine. When you switch to your record at age 70, if 50% of your full retirement age benefit amount (i.e. your PIA, or the amount you would have received on your account at age 66) is higher than her full retirement age benefit amount, she'll receive an excess spousal benefit equal to the difference in those amounts. That would bring her total benefit rate up to 50% of your PIA, assuming that it is higher than her PIA.

Before you apply for any benefits, you may want to run the maximization software available on this website if you haven't already done so.

Best, Jerry