My wife will be 65 this year, while I will be 60. If she applies for Social security at 66 10m FRA for $810/mth will it impact her spousal benefits when I become 67 FRA (est $3400/mth). Will SSA automatically change/update her to spousal benefits or will she have to apply.

Hi. Filing for her own benefits at full retirement age (FRA) will not adversely affect what your wife will be able to receive when you start drawing your benefits. When a person is drawing their own benefits and later becomes eligible for spousal benefits, their unreduced spousal rate is calculated by subtracting their own primary insurance amount (PIA) from 50% of their spouse's 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).

Thus, if your wife starts drawing her own benefits at FRA, when you file for your benefits she'll become eligible for an additional excess spousal benefit equal to the difference in her own rate and 50% of your PIA. That will bring her combined benefit rate up to a full 50% of your PIA, which is the most that she could receive as a spouse while you're living. And, by the way, if your wife was born in 1955 her FRA would be age 66 & 2 months, not 66 & 10 months.

Filing for her own benefits at FRA and then filing for excess spousal benefits when you apply certainly sounds like your wife's best option, but you may want to consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you and your wife in order to determine your best strategy for maximizing your benefits.

Best, Jerry