Both my wife and I were 64 y/o in April 2016. She took her own retirement benefit at age 63 activating her Early Retirement Deductions. Now I have reached FRA and plan on taking my spousal benefit. Our plan is that we will continue this way until I higher income earner) reach 70 y/o at which time I will take my retirement benefit and she will take her spousal benefit from my benefit. Questions:
1) on p 56 in your book, you point out my spousal benefit now will be based on her full retirement benefit, not her reduced retirement from taking s.s. at age 63? Correct?
2) her spousal benefit when I take my retirement at age 70 will be 1/2 of my full retirement benefit (age 66) and then reduced by the amt of her Early Retirement Deductions? Correct?
Am I getting this correctly?

Hi,

The answer to your first question is yes, your unreduced spousal benefit will be 50% of your wife's full retirement age rate (PIA), not 50% of her reduced rate.

The answer to your second question is also basically yes, but the actual calculation method is different. When your wife files on your record, her spousal benefit will be calculated as 50% of your full retirement age rate (PIA), minus her own PIA. That excess spousal amount (if any) will then be added to her reduced retirement rate.

You may want to consider using the maximization software on this website to make certain that you are choosing the best possible filing strategy.

Best, Jerry