I am 60 years old, and have worked and earned a salary near the FICA tax maximum for 35 years. My plan is to begin to take Social Security when I reach age 70. My recent Social Security Statement says that I will receive $3,749 per month at age 70.
My wife is 68 years old, and has worked a few years but has generally stayed home with our children. She worked enough years to qualify for a Social Security benefit on her earnings record. Her SS Statement indicates that she would receive $928 per month at age 68 and $1094 at age 70. My instinct is that she should begin to take her benefit today (at age 68), even though it is 17% lower than what she would receive at age 70. I think that may maximize her benefits because when I reach age 70 and begin to take my benefit, she should switch to a Spousal Benefit. She would then be 78, and she should receive 50% of my benefit as a Spousal Benefit, or $1874 per month, which would be more than her benefit (based on her earnings record) whether she takes her benefit beginning at age 68 or waits until age 70. Although she would have a lower benefit at age 68, she would receive more in total before she reaches age 78 because she would have 2 more years of benefits.
Question: Is the strategy based on my instincts correct, or is it short sighted?

Hi,

Your analysis is basically correct, except that your wife won't receive 50% of your age 70 rate as a spouse. Instead, her maximum potential spousal benefit rate will be 50% of your full retirement age rate (PIA).

Still, though, since she would ultimately be due a spousal rate that's higher than her own age 70 rate, it would almost certainly be better for her to start drawing her retirement benefits as soon as possible. You may want to run the maximization software available on this website to be sure that you base your decisions on the correct benefit rates.

Best, Jerry