My broker suggested that I file a restricted application for a spousal benefit. My application was rejected but the reason is unclear to me. I am 66 and have not yet begun to draw benefits. My husband is 68 and has been drawing since January 2018. If I were to claim benefits now based on my own earnings record, my benefit would be about 10% larger than my husband's. Does my own larger benefit disqualify my claim to a spousal benefit?

Hi,

No, the fact that your own retirement benefit rate would be higher than your spousal rate would not bar you from being paid spousal benefits, provided that you haven't yet filed for your own retirement benefits. But, even if you've suspended your own benefits, if you have filed for and established entitlement to a higher benefit rate on your own record that would prevent you from receiving spousal benefits.

For example, say Sally turned 66 in January 2018 and filed for her retirement benefits. Sally is eligible for a full retirement age rate of $1000, but she decides to suspend her benefits from age 66 to 70 in order to increase her age 70 rate by 32% to $1320. Sally's husband files for his benefits in January 2018 and is drawing his full benefit rate of $1800. Sally files for spousal benefits thinking that she should be able to receive a spousal rate of $900, or 50% of her husband's rate. However, since Sally filed for and suspended her own benefits she's not eligible for spousal benefits because her own benefit rate (even though suspended) is higher than her spousal rate.

What Sally in the above example should have done is simply file for spousal benefits only instead of also filing for and suspending her own benefits. Assuming that you haven't filed for your own retirement benefits (whether or not they've been suspended), then based on your description I don't see any reason why you shouldn't be able to draw spousal benefits while allowing your own benefit rate to grow until age 70. If you have filed for and suspended your own benefits, then you may be able to withdraw your application (https://www.ssa.gov/planners/retire/withdrawal.html). Otherwise, you'll probably want to re-contact Social Security to have them explain why your claim was disallowed, or you can file for an appeal of the disallowance (https://www.ssa.gov/pubs/EN-05-10041.pdf).

Best, Jerry