I am 67 years old and will wait to 70 years old to begin my Social Security monthly benefit payouts. Since my FRA is 66 years and 2 months, can I wait to 70 years and 2 months to get 4 full years of the SS monthly benefit payout increase or is the most I can get equal to 3 years and 10 months of increase at 70 years even.
In addition, whatever my SS monthly benefit payout ends up being, can my wife opt for 50% of my benefit payout at 70 years instead of her own at her FRA (66 years and 10 months). If she retires a little earlier than 66 years 10 months, does the percentage of my 70-year payout she will get go down and by how much each month? My wife will continue to work for several more years but her monthly benefit payout looks like it will always be less than 50% of mine.
Thanks for looking at my question. I read "GET What's Yours" and enjoyed it.Jeff
Hi Jeff. No. You can't earn additional delayed retirement credits (DRC) by waiting past age 70 to start drawing your benefits.
Since your wife was apparently born after January 1 1954, she can't apply just for spousal benefits without also being required to apply for her own Social Security retirement benefits. However, your wife could potentially start drawing her own benefits before you start drawing your benefits, and then apply for an excess spousal benefit when you claim your benefits.
Your wife's excess spousal rate would be calculated by subtracting her own primary insurance amount (PIA) from 50% of your 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). If your wife starts drawing her own benefits prior to FRA, the resulting reduction for age would continue to apply even if she later becomes eligible for an excess spousal benefit.
For example, say Joy files for her Social Security retirement benefits at age 65. Joy's FRA is age 66 & 10 months, and her PIA is $800. Because Joy claimed her benefits 22 months prior to her FRA, her benefit rate is reduced for age to $702. Two years later, Joy's spouse applies for his benefits when he reaches age 70. Joy's spouse's PIA is $2000, and his age 70 rate is $2613. Joy's unreduced excess spousal benefit would then be calculated by subtracting her PIA from 50% of her husband's PIA, which in Joy's case amounts to $200 (i.e. $2000/2 - $800). Joy's excess spousal amount isn't reduced for age because she had already reached FRA when she became eligible for spousal benefits. Therefore, Joy would be paid her full excess spousal amount of $200 plus her own reduced benefit of $702 for a combined benefit rate of $902.
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
