Good afternoon Larry,
I'm 63 and my wife is 65+ and eligible for SSN. Her payments if taken now will be small, ~1,100 per month and mine are estimated at ~$4,000 if I work to 70. We both work, though her income is variable as a consultant. Would it make sense for her to apply for SSN now given the little increase from waiting until 70 and invest her monies in a Roth IRA? I understand she could actually receive additional SSN based upon mine and would like to understand its likelihood and how to apply for this.

Thanks

Hi. I don't know how close your wife is to her full retirement age (FRA). but yes, based on the amounts cited in your question it sounds like your wife should probably claim her own benefits effective no later than the month she reaches full retirement age (FRA). When you apply for your benefits your wife can apply for an excess spousal benefit, which will then 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). I'm not a financial advisor, though, so I can't give your wife advice on how to invest her benefits.

If your wife waited instead until age 70 to start drawing her own benefits, then her eventual excess spousal rate would be calculated by subtracting her age 70 rate from 50% of your PIA. Therefore, if 50% of your PIA will be higher than your wife's own rate even if she waited until age 70 to start drawing, then your wife's combined benefit amount once she starts drawing an excess spousal benefit would be the same regardless of whether she had started drawing her own benefits at FRA or age 70.

It sounds like you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of the options available to you in order to determine your best overall strategy for maximizing your benefits.

Best, Jerry