I am 2 years older than my wife and have a adult "child" with disabilities (since birth). If I suspend taking my benefits to maximize my wife's survivor benefit (her benefit is low as she stayed home with our daughter) is my wife's 100% survivor benefit and my child's 75% limited by the family maximum and is the family maximum based on my FRA benefit or my 32% higher benefit at age 70?
Thanks for your help...
Jeff

Hi Jeff,

Your wife's potential unreduced widow's benefit would be calculated based on your full benefit amount including any delayed retirement credits (DRC) you earn. So, if you wait until age 70 to start drawing and your benefit amount is 132% of your full retirement age benefit (PIA), that higher rate would carry over to your widow.

However, disabled child's benefits are based on the full retirement age benefit amount (PIA), and are not increased by DRCs. So, as a survivor, your disabled child would be eligible for 75% of your PIA.

The family maximum benefit payable on your record is derived from your PIA, not your age 70 benefit. While you're living, though, any extra benefit you receive as a result of DRCs is not counted against the family maximum. Your wife's increased widow's benefit would, however, count against the family maximum after your death.

To illustrate, say your PIA is $2000, and your family maximum is $3500. If you wait until age 70 to start drawing benefits, your widow would be eligible for a monthly benefit of $2640 and your surviving child would be eligible for $1500 per month. Since the total of their full benefits would exceed the family maximum of $3500, their monthly benefits would be reduced proportionately. In this example, the widow would end up receiving about $2232 monthly, and the child would receive about $1268.

In your case, if your wife is entitled to even a small benefit based on her own work record, and if your child could potentially qualify as a disabled child on your wife's record, the family maximums on your account and your wife's account could be combined in order to permit a higher total family payment. This provision of the Social Security law may permit your wife and child to receive their full maximized survivor benefits in the event of your death, as well as higher auxiliary benefits while you're living.

You may want to consider running the maximization software available on this website in order to identify the best filing options for you and your family.

Best, Jerry