Hello Larry,
My wife and I are both age 62.5. Our FRA is 66.5.
I plan to start collecting Social Security at age 65 (with some reduced benefits from FRA). If my wife also starts collecting Social Security at age 65, can she then change to claim my higher Spousal benefits at her FRA (66.5)? Would the formula be based on my earlier locked in reduced benefits or at the rate I would have received if I had waited till FRA myself? Thank you for your answer. I am just in a planning stage now, but I think your program would be a good value for me to purchase shortly.
Hi,
No. Since your wife was born after January 1 1954, she'll be deemed to be filing for both her own Social Security retirement benefits and spousal benefits whenever she applies for either benefit. She can't qualify for spousal benefits at least until you start drawing your benefits, but her unreduced spousal rate would be calculated by subtracting her primary insurance amount (PIA) from 50% of your PIA. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA).
For example, say Amy files for her benefits in 2022 at age 65. Amy's husband Bob is the same age as Amy, and he files for his benefits at the same time. Amy's PIA is $800, and Bob's PIA is $2000. Therefore, Amy would be eligible for an unreduced excess spousal rate of $200, which is calculated by subtracting her PIA from 50% of Bob's PIA (i.e. $2000/2 - $800). However, since Bob and Amy are filing at age 65, both of their benefit rates are reduced for age. In Bob's case, instead of getting his full PIA his rate is reduced for age to $1800. In Amy's case, both her own benefit rate and her excess spousal rate are reduced for age to $720 and $175, respectively. Thus, she'd be paid a reduced combined benefit amount of $895.
You and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine the best strategy for maximizing your benefits.
Best, Jerry
