I have paid the maximum in SS taxes every year for the past 39 years. My wife has earned 40 credits or quarters of earnings and qualifies for about $400 per month starting now at age 62. Should she start taking a benefit now? We don't need the money. Will it reduce her spousal benefit later if she takes now. I plan on waiting as long as I can, 70 if possible, in 8 more years. Thanks

Fred,
Yes, if your wife takes her retirement benefit early, then it will reduce her total benefit as a spouse. Your wife's excess spouse's benefit is equal to 1/2 of your retirement benefit at your full retirement age (FRA) minus her retirement benefit at her FRA. Her total benefit as a spouse is her retirement benefit plus her excess spouse's benefit. So, if she takes her retirement benefit at her FRA her total benefit as a spouse will be equal to 1/2 of your FRA retirement benefit. If she takes her retirement benefit early, then her total benefit as a spouse will be her reduced retirement benefit plus her excess spouse's benefit. You might want to run our software, MaximizeMySocialSecurity, since it will determine the filing strategy that gives you the maximum lifetime social Security benefits.

Thanks,
Mike