I'm filing for ss at FRA (66). My wife began ss at age 62 last year (2017). Can she wait until she is 66, then file for her spousal benefit (half of my ss) or does she have to start drawing her spousal benefit at a reduced percentage immediately when I retire ?
Hi,
No, since your wife was born after January 1 1954 and since she's already filed for her own benefits she'll be deemed to file for spousal benefits effective with the first month of your entitlement to your retirement benefits (https://www.ssa.gov/planners/retire/deemedfaq.html). Her reduced retirement rate would continue to apply even if she qualifies for additional spousal benefits on your record, and if her spousal benefits start prior to her full retirement age those benefits will be reduced as well.
For example, say Louise files for her retirement benefits at age 62. Her full retirement age rate (PIA) is $500, but she receives a reduced rate of $370 for starting early. A year later, Louise's husband files for his retirement benefits and he has a PIA of $2000. Louise's unreduced spousal rate would be calculated by subtracting her PIA from 50% of her husband's PIA, which in this case would be $500 (i.e. $2000/2 - $500). However, since Louise is forced to file for her spousal benefits as soon as her husband files for his benefits, Louise's spousal rate is reduced to $370. This spousal benefit would then be added to Louise's reduced retirement benefit to give her a combined benefit amount of $740 (i.e. $370 + $370).
What you may want to consider doing instead is filing just for spousal benefits only at your full retirement age, which you're permitted to do as long as you were born prior to January 2 1954. You could then allow you own benefit rate to grow until age 70, at which time you could file for your retirement benefits and your wife could file for spousal benefits.
Before filing, you should strongly consider using our maximization software to compare your filing options in order to determine which strategy is best for you and your wife.
Best, Jerry
