I just finished your book but have a couple questions related to spousal SS. My wife will be 62 in a few months and I will be 64. I am the higher earner of the two by quite a bit. My question(s) are. 1). If she starts drawing at age 62 she will get 70% of her full retirement benefits. I don't plan on drawing until age 70. If she does draw at age 62, when I start drawing is she limited to 70% of what she normally would get since she started early? 2) if I get to normal retirement can I draw on her as a spousal until I reach age 70 when I draw on my own?
Appreciate any help.
Thanks

Ron

Hi Ron,

If your wife was born in 1957 and starts drawing her Social Security retirement benefits effective with the month she reaches age 62 she would receive 72.5% of her full retirement age rate. The 27.5% reduction in her retirement rate would continue even if she later qualifies for additional spousal benefits from your record. Any reduction applicable to the additional spousal rate would be calculated based on her age at the time she becomes eligible for the spousal benefit.

For example, say June files for her Social Security retirement benefits at age 62. June's full retirement age rate, or primary insurance amount (PIA), would be $600, but her reduced age 62 rate is $435. When June is age 67, her husband files for his Social Security retirement benefits. June's husband's full retirement age rate (PIA) is $2000, and June's unreduced spousal rate is calculated by subtracting her PIA from 50% of her husband's PIA, which would be $400 in June's case (i.e. $2000/2 - $600). June's spousal benefits are not reduced for age since she was already full retirement age when she first qualified for spousal benefits. June's excess spousal benefit is then added to her reduced retirement rate to give her a combined benefit amount of $835 (i.e. $435 + $400).

Since you were born after January 1 1954, you could never file just for spousal benefits only without being deemed to have filed for your own retirement benefits at the same time. In other words, filing for a spousal benefit while allowing your own benefit rate to grow until age 70 won't be an option for you.

You and your wife should strongly consider using our software to explore and compare your options so that you can choose the best possible filing strategy.

Best, Jerry