IS THE 50% SPOUSAL BENEFIT ALWAYS 50% OF THE OTHER SPOUSE'S FULL BENEFIT?

I am 71 and my wife is 66. I have been collecting regular SSA at the reduced rate of course since 62. My wife still works and she does not collect. It appears that her spousal benefit is 50 percent of what my benefit would have been had I waited to collect at 66 as opposed to half of what I actually get. Is this correct? What is the logic?

Hi,

Yes, unreduced spousal benefits are equal to 50% of the worker's full retirement age benefit (PIA). The logic is that if a spouse waits until FRA to file, he or she should not be penalized simply because their spouse chose to take reduced benefits. If spousal benefits are taken before FRA, they are reduced independently from the worker's reduction, based on the spouse's age at the time they start the spousal benefit.

Unfortunately, the same logic does not apply to widow(er)'s benefits. So, if you die first, your wife's potential widow's benefit will be limited to 82.5% of your PIA because you chose to receive benefits at age 62. That won't matter, though, if the benefit amount she gets on her own record is higher than the potential widow's benefit. In that case, she'll simply keep getting her own benefit.

On the other hand, if your wife dies first, your potential widower's benefit would be her full rate, including any delayed retirement credits she earns before switching to her own account. I'm assuming that she filed just for spousal benefits at age 66, and plans to switch to a higher benefit on her own account at age 70.

Best, Jerry