I read your book and enjoyed it. One basic question: I understand that if I claim spousal benefits, because of deeming (I'm not grandfathered), I'm also deemed to be filing for my own benefits. How does it work if I file for my own benefits before my spouse is even entitled to file for her benefits (say she is 61). Or, alternatively, if she is entitled (say she is 62) but hasn't yet because she's waiting until 70. Can I collect my own benefits now, and later switch to spousal benefits if it's higher? In other words, I understand deeming when I claim spousal benefits, but what if I can't claim spousal benefits yet?

Hi,

No, you couldn't switch to spousal benefits after filing for your own Social Security retirement benefits. Assuming that you were born after January 1 1954, whenever you file for your Social Security retirement benefits you'll be deemed to also be filing for spousal benefits effective with the first month that you could qualify for those benefits. If your spouse isn't yet eligible or hasn't filed for benefits on their Social Security record when you file for your retirement benefits, you would automatically be considered to have filed for spousal benefits effective with the first month that your spouse becomes entitled to either Social Security retirement or disability benefits. You would never switch from retirement to spousal benefits, though, but you could become eligible for an excess spousal benefit in addition to your own retirement benefits.

For example, say Lou was born in 1956 and files for retirement benefits at age 62. Lou's full retirement age benefit rate (PIA, or primary insurance amount) is $800, but he receives a reduced rate of $586 in return for starting benefits early. Lou's spouse files for her benefits when Lou turns 64, and her PIA is $2000. Lou is deemed to have filed for spousal benefits at that time, and his unreduced spousal rate would be calculated by subtracting his PIA from 50% of his wife's PIA. In Lou's case that results in an unreduced spousal rate of $200 (i.e. $2000/2 - $800), but since Lou is not yet full retirement age when he becomes eligible for the spousal benefits his spousal rate is reduced for age to $161. That reduced spousal rate would then be added to Lou's retirement rate of $586 to give him a combined monthly benefit rate of $747.

You and you wife should strongly consider using our maximization software before deciding when to file for your benefits in order to determine your best overall strategy for claiming your Social Security benefits.

Best, Jerry