I am 62 y/o with FRA month benefit of $2,665 beginning 10/2023, with benefits of $3,411 if I do not file until I am 70 y/o. I earn about $100,000/year and expect to work at least 5 more years.

My wife is 60 y/o with FRA benefit of $1,309 beginning 3/2027, with benefits of $922 available beginning 03/2021, at age 62. She works part-time and earns about $10,000/year.
We have 2 college aged children and an adopted 8 year old.

Is there any downside to my wife filing for benefits when she turns 62? It is my understanding that if she did that, she would receive her early retirement benefit of $922 and our 8 year old would receive a child benefit of $655 (1/2 of my wife’s FRA). I would not receive any child in care benefits due to my earnings. Then when I turn 70, I would file and collect my benefits of $3,411 and my wife and 8 year old would split the remainder of the family maximum off my work record until our 8 year old turns 18. At that time, my wife would then get her full spousal benefit of $1332.50 off my work record of $1332.50.

It seems receiving almost $19,000 per year for 8 years and allowing me to delay my benefits is too good to pass up.

thank you

Hi,

You're mistaken if you think that your wife could take her own benefits at 62 and then switch to a full spousal benefit at full retirement age (FRA). In fact, if your wife takes her own benefits at age 62 she'll be stuck with the resulting benefit reduction for as long as both of you are living.

For example, say Jan has a primary insurance amount (PIA), or FRA rate, of $1300 but starts drawing at age 62. As a result, Jan's benefit amount is reduced for age to $926. After Jan reaches FRA her husband files for his Social Security retirement benefits with a PIA of $2700. Jan's spousal benefit would be calculated by subtracting her PIA from 50% of her husband's PIA, which in her case is $50 (i.e. $2700/2 - $1300). That amount would then be paid in addition to Jan's own reduced benefit to give her a combined benefit rate of $976.

So, that's the potential downside to your wife starting to draw at age 62, but your wife may still want to at least consider filing early in order to allow your adopted child to start receiving benefits sooner. Also, you may then qualify for child in care spousal benefits when you reach FRA, since your earnings wouldn't preclude you from being paid benefits at that time. You and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to help you determine the best strategy for maximizing your benefits.

Best, Jerry