Hi Larry,
Thank you for taking the time to read my question. I will be 63 in June 2021. My husband is 76 and took early SSDI when he was 64. His current benefit is 2547.50 (includes his Medicare payment). He is not in good health and I am considering retiring when I reach 63. My own benefit at that time will be approximately 880.00 per month. Do I qualify, and should I file for spousal benefits or my own. Is my spousal benefit figured on what his SS payment is currently or is it based what it would have been 10 years ago if he had not retired early...I’m confused! Since he is in poor health, does when I retire effect my survivor benefit? I don’t know if I’m even asking the right questions!

Thank you, kindly

Kathy

Hi Kathy. Since you were born after January 1 1954, whenever you apply for either spousal benefits or your own Social Security retirement benefits you'll be deemed to be filing for both. Spousal benefits are calculated based on 50% of the worker's primary insurance amount (PIA). A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA), or their unreduced SSDI benefit rate. Social Security disability (SSDI) benefits are paid at a rate of 100% of a worker's PIA assuming that they didn't collect reduced Social Security retirement benefits prior to qualifying for SSDI benefits.

If you file for benefits at FRA and if your husband is living at that time, what you'd be paid is the higher of your own PIA or 50% of your husband's PIA. But, if you start drawing prior to FRA your benefit rate will be reduced for age. By the way, a person's PIA is adjusted to reflect Social Security cost of living increases (COLA), so your spousal rate will be calculated based on your husband's current rate at the time you claim benefits.

Drawing reduced benefits prior to FRA wouldn't reduce your future widow's benefit rate as long as you don't start drawing widow's benefits prior to your FRA. Unreduced widow's benefit rates are calculated based on 100% of the deceased spouse's monthly benefit rate, so if you become eligible for widow's benefits at FRA or later you'll be eligible for your husband's full benefit rate including COLAs. You wouldn't get both his full rate and your own benefit rate, though, just the higher of the two amounts. If you start drawing reduced benefits and if your husband dies prior to when you reach FRA you would have the option of either a) drawing just your reduced retirement benefit until you reach FRA at which time you could file for an unreduced widow's benefit, or b) file for reduced widow's benefits.

It sounds like you 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