Hi,
I plan to start collecting social security this December at age 70 when my benefit will be $2730. My wife has applied to start collecting next month (February) at age 66 with a benefit of $1050. Will her benefit increase to half of mine when I start collecting at 70? Is there an advantage if she delays starting to collect and how can she optimize her benefits? We both have long life expectancy.
Thanks!

Hi,

If you'll reach age 70 in December 2020 and your benefit rate if you start drawing then would be $2730, that means your primary insurance amount (PIA) must be roughly $2068. A person's PIA, by the way, is equal to the amount of their Social Security retirement benefit if they start drawing at full retirement age (FRA). Therefore, assuming that your wife was born after January 1 1954 and since her own PIA is apparently slightly more than 50% of your PIA, she likely won't qualify for any spousal benefits. On the other hand If your wife was born prior to January 1 1954, she would then have the option to file only for spousal benefits when you start drawing your benefits, while letting her own benefit rate grow until age 70.

Even if your wife was born after January 1 1954, though, an argument could be made that she should wait until age 70 to apply for her own retirement benefits. That's especially true if you both believe that you'll live long lives. If your wife waits until age 70 to start drawing her benefits her benefit rate will be 32% higher than if she starts drawing at FRA.

However, if your wife ultimately decides to file for her benefits now or anytime before you reach age 70, you should definitely file a restricted claim for spousal benefits only on her record. By doing so you could then receive spousal benefits equal to 50% of your wife's PIA while still allowing your own benefit rate to grow until age 70. You could then switch to drawing your own benefits at age 70.

Bottom line, it sounds like the best option for you and your wife depends partly on your wife's birthdate and also on your expectations regarding the future. You and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully explore and compare all of your various options so that you can choose the filing strategy that you believe will best address your current and future needs.

Best, Jerry