Larry, thank you for this website. In my internet research, I find conflicting answers to the following scenario:

My wife and I will both turn 62 this year. Her PIA is less than half of mine. Her PIA is $930. My PIA is $2,800. If we both wait until age 70 to begin drawing benefits, her regular benefit will be approximately $1,200 due to the DRC. How would her spousal benefit be calculated at that time?

Some websites say that the spousal benefit equals her regular benefit at that time ($1,200) plus an excess spousal benefit calculated as $2800/2 - $930 = $470, for a total benefit of $1,670. Other websites say her spousal benefit would equal her regular benefit ($1,200) plus an excess spousal benefit calculated as $2800/2 - $1200 =$200, for a total benefit of $1,400.

If the second approach is correct, then it appears that she gets no benefit at all from delaying her receipt of benefits. If the first approach is correct, then there is a benefit from waiting, although perhaps not enough to justify the delay. Thank you in advance for your thoughts.

Hi,

The second calculation method you mentioned is correct, and therefore you're right to conclude that it would apparently be disadvantageous for your wife to wait past her full retirement age to start drawing her retirement benefits (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615694). Of course, that's based on the assumption that the figures you quoted are accurate, so you may want to consider using our maximization software to make sure to identify your and your wife's best overall filing strategy.

Best, Jerry