My wife is almost 3 years older than myself (I am then larger wage earner) and started collecting her SS benefits (reduced) at age 62. I plan to retire in a few more years when I am 62 1/2. Does my wife have to do the switch to take the spousal benefit then when I file for SS benefits (she will be 65 and 4 months) or can we wait 8 more months after I retire and am already collecting my benefits to when she turns 66 to do the switch over?
Hi,
If your wife was born after January 1 1954, then she would be forced to file for spousal benefits as soon as you file for your benefits (https://www.ssa.gov/planners/retire/deemedfaq.html). However, if your wife was born before January 2 1954, then she would have the option of waiting until her full retirement age (FRA) in order to file for unreduced spousal benefits, assuming that she qualifies.
In no case could your wife receive spousal benefits before you start drawing your benefits, though, and she wouldn't be 'switching' to spousal benefits. Instead, what she could potentially receive as a spouse would be an additional payment that would then be added to her own reduced retirement benefit. For example:
Say Sally has a full retirement age rate (PIA) of $800, but starts drawing her retirement benefits at age 62 at a reduced rate of $600. Sally's husband Bill files for his benefits when Sally is at least FRA. Bill's PIA is $2000, so Sally's spousal benefit would be calculated by subtracting her PIA from 50% of Bill's PIA, which in this example would result in a spousal rate of $200 (i.e. $2000/2 - $800). That $200 would then be added to Sally's own reduced rate of $600 to give her a combined rate of $800.
Before filing, you should strongly consider using our maximization software in order to compare your options and determine your best strategy. You should also be aware that if you file for reduced benefits yourself, that would limit the benefit rate that your wife could receive as a widow should you die before her (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615320).
Best, Jerry
