I am 66 in August and my wife is 63 we are both retired. According to our most recent SS Statements my wife would receive $615 at 66 and $836 at age 70. I would receive $2462 at 66 and $3250 if I wait until 70. Would my wife receive spousal benefits of $1625 if we waited until I was 70 or is she limited to 50% of my PIA at 66 or $1231?

Hi,

The most that your wife could receive as a spouse is 50% of your primary insurance amount (PIA), not 50% of your age 70 rate. But, if she starts drawing her own Social Security retirement benefits before she reaches full retirement age (FRA), then her combined retirement/spousal rate would be somewhat less than 50% of your PIA.

For example, say Jane is has a PIA of $600 and files for her own Social Security retirement benefits at age 63. Jane's retirement rate would then be reduced to $470. Four years later when Jane is past age FRA, her husband files for his benefits with a PIA of $2400. Jane's unreduced spousal rate would be calculated by subtracting her PIA from 50% of her husband's PIA, which in this case would be $600 (I.e. $2400/2 - $600). That amount would then be added to Jane's own reduced retirement rate to give her a combined benefit amount of $1070. If Jane had instead waited until FRA to file for her retirement benefits, her combined rate would have been $1200 (i.e. $600 + $600), or a full 50% of her husband's PIA.

However, if you wait until age 70 to start drawing your benefits and you subsequently die before your wife does, she could be paid your full age 70 rate as a widow. She wouldn't get that amount plus her own retirement benefit rate, though, just the higher of the 2 amounts. And, her combined retirement and survivor rate would add up to your full age 70 rate even if she started drawing her own retirement benefits before FRA.

One strategy that you may want to at least consider is for your wife to apply for reduced retirement benefits effective with the month you reach your FRA. Since you were born prior to January 2 1954, you could then draw spousal benefits equal to 50% of your wife's PIA while still allowing your own benefit rate to grow until age 70. You and your wife may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to explore and compare all of your various options in order to determine the filing strategy that would likely work out best for both of you in the long term.

Best, Jerry