My question involves the spousal benefit and I've searched the internet to no avail for a straight answer to this. If I am the higher earning spouse and I decide to take my social security benefit before my FRA, is my wife's spousal benefit based on what my PIA would have been at FRA rather than my reduced benefit amount (because I started before FRA)? You wouldn't believe how difficult it is to find a straightforward, simple answer to this!

Hi,

Unreduced spousal benefits are based on 50% of the worker's primary insurance amount (PIA), but the reason that it's hard to find a straight answer is because a lot of variables can come into play. The straightest way I can answer your question is to say that if your wife isn't eligible for benefits based on her own earnings history and if she applies for spousal benefits at full retirement age (FRA) or later, she could be paid an unreduced spousal benefit equal to 50% of your PIA even if you start drawing your benefits prior to FRA. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA).

However, if your wife has enough credits to qualify for Social Security benefits based on her own earnings history, then her options depend on when she was born. If your wife was born after January 1 1954, she'll be deemed to be filing for both her own benefits and for spousal benefits whenever she files for either benefit. In that case, if 50% of your PIA is higher than your wife's PIA, she'd only get a full 50% of your PIA if she doesn't start drawing either her own benefits or spousal benefits prior to FRA.

But, if your wife was born prior to January 2 1954 and if you're drawing your benefits, she could potentially file just for spousal benefits at FRA or later without filing for her own benefits. In that case she'd get a full 50% of your PIA regardless of at what age you started drawing your benefits. Regardless of when your wife was born, though, if she starts drawing either her own benefits or spousal benefits prior to FRA, her benefit rate will be reduced for age.

It sounds like you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to do your Social Security planning. The software analyzes all of the pertinent variables in order to determine the best strategy for maximizing your benefits.

Best, Jerry