My husband and I were both born in 1957. He wants to retire at 62, while I plan to continue working until 70. I have worked enough quarters to qualify for Social Security (est. benefit $1155 at FRA), but am currently working at a state govt. job and don't pay Social Security. My husband was born and worked in Australia until 2006, when we got married and he moved here. He was in the newspaper business in Australia, but has only been able to find part-time retail work here, which is why he wants to retire early. It pays so little it's barely worth his time. He also has enough quarters to qualify for Social Security (est. benefit $293 at FRA) and Medicare and will also qualify for an Australian old age pension at 67 (as we understand it).

What we'd like to do is for him to file for his SS benefits at 62 (reduced, of course), then when I reach 66.5, I would file for mine and he would then get his spousal benefit (50% of mine?). I would draw my 100% FRA benefit and keep working until 70, when I would retire and get my state pension and my SS benefit would be reduced. Does this make sense?

I've tried using online calculators, but they don't allow for this scenario.

Hi,

Your basic plan is an option, but it sounds like you and your husband believe in the common misconception that a person can file for reduced benefits on their own record at age 62, and then switch to an unreduced spousal benefit at full retirement age (FRA). In fact, that is not an option.

Here is how your husband's benefits would be calculated using your figures if he follows his plan. If he files on his own record at age 62, he would receive a reduced rate of about $212 based on his FRA rate (PIA) of $293. If you then file at full retirement age with a benefit rate of $1155, his spousal benefit would be calculated by subtracting his full rate, or PIA, from 50% of your PIA. So, his unreduced excess spousal benefit would be approximately $284 (i.e. $1155/2 - $293). And, if he becomes eligible for his excess spousal benefit before FRA, that benefit would be reduced as well. Your husband's excess spousal benefit would then be added to the reduced benefit rate from his own record to give him a combined benefit of roughly $496 (i.e. $212 + $284).

The maximization software available on this website is programmed to handle all of the factors involved in your case. You may want to strongly consider using it to determine the best overall filing strategy for you and your husband.

Best, Jerry