Hi LARRY I am 65 and currently receive retirement pay from navy$1608,i will also receive pension and annuity from union in jan.20 about $3000. I plan to apply for my social security when I am 661/2 my fra $2200 ,my wife also plans on applying for benefit at 65,her fra$531at 66.4.question is she eligible for spousal benefit?also will my retirement from navy and union pension effect my social security? we both are not working my wife at present time is 631/2. thanks/

Hi,

Your military retirement pay won't affect your Social Security benefits, nor will your union pension assuming that your earnings were always subject to Social Security taxes. It sounds like your wife will be eligible for an excess spousal benefit from your record, but she couldn't draw spousal benefits until you start drawing your benefits. Since your wife was born after January 1 1954, she will be deemed to be filing for both her own Social Security retirement benefits and for spousal benefits whenever she files for either of those benefits. And, her benefit rate will be reduced for age if she starts drawing prior to her full retirement age (FRA).

For example, say Jan files for benefits at age 65. Jan's full retirement age is 66 & 4 months (i.e. born in 1956), and her primary insurance amount (PIA) is $540. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing at FRA. Jan's monthly benefit rate is reduced for age to $492 since she is starting her benefits 16 months prior to FRA. One year later, Jan's husband files for his Social Security retirement benefits with a PIA of $2200. Jan's unreduced excess spousal benefit rate would be calculated by subtracting her PIA from 50% of her husband's PIA, which in this example is $560 (i.e. $2200/2 - $540). However, since Jan is still 4 months shy of FRA when her husband starts drawing his benefits her excess spousal rate is reduced for age to $544. That amount is then paid in addition to Jan's own reduced retirement benefit of $492 to give her a combined rate of $1036.

You and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully explore and analyze all of your various options so that you can choose the best possible filing strategy for maximizing your benefits.

Best, Jerry