I'll be 66 in 09/2022 and plan to file for retirement benefits in 01/2023, at my FRA.
My wife will be 64 in 04/2022. Her PIA is far below 50% of my PIA.
If she files early for her own benefit now and switches to a spousal benefit in 12/2024, will that spousal benefit be lower than if she does not file for her own benefit and simply waits until 12/2024 to file for the spousal benefit?

Hi. Your wife can't draw her own benefits and later 'switch' to drawing spousal benefits. Your wife could claim her own benefits now at a reduced rate, but she'll then be stuck with that reduction for as long as both of you are living. And, if your wife claims her own benefits now, she'll be forced to file for spousal benefits when you start drawing your benefits. That means that her spousal rate would also be reduced for age if you apply for your benefits before your wife reaches her full retirement age (FRA).

For example, say Mary files for her Social Security retirement benefits at age 64. Mary's PIA is $800, but Mary's benefit rate is reduced for age to $657. When Mary is 65 her husband applies for his benefits, and his PIA is $2000. Mary's unreduced excess spousal benefit would then be calculated by subtracting her PIA from 50% of her husband's PIA, which in Mary's case amounts to $200 (i.e. $2000/2 - $800). But, since Mary isn't yet FRA when she becomes eligible for the spousal benefit, her spousal rate would be reduced for age to $172. Mary's combined benefit rate would then be $829.

It sounds like you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options so that you can determine the best overall strategy for maximizing your benefits.

Best, Jerry