My wife is 65 and will be 66 on April 2017. She is collecting disability benefits. I turn 66 this November. I plan to file and suspend and apply for benefits when I turn 70. My wife at that time will file for spousal support. What are they going to base the spousal benefits on? The amount at FRA or the amount at 70? P.S I just bought your software and it appears as if the amount is based on the amount at age 66 instead of 70.

Hi,

First of all, you DO NOT want to file and suspend benefits on your own account. What you should do instead is file a restricted application for spousal benefits only effective with the month you reach age 66, then file a separate application for benefits on your own record when you reach age 70.

Spousal benefits are calculated based on 50% of the worker's full retirement age benefit amount (PIA). Disability benefits on a person's own account are paid at a rate of 100% of their PIA. In other words, it's like receiving your full retirement age benefit early based on a disability.

So, when you file your restricted application for spousal benefits at age 66, you will be eligible for up to 50% of your wife's disability benefit amount. However, there is a special family maximum formula applicable to disability accounts that could reduce your spousal benefit until your wife reaches age 66. At that point, her disability benefit will convert to a retirement benefit, and the regular family maximum formula will apply. The maximization software should tell you whether or not the special disability maximum formula will apply in your wife's case.

When you subsequently file for benefits on your own account at age 70, your wife can apply for an excess spousal benefit on your record. Her excess spousal benefit would amount to 50% of your PIA (i.e. full retirement age benefit, not your age 70 benefit that's increased by delayed retirement credits), minus 100% of her own benefit amount.

Best, Jerry