Hi Larry. I turn 66 and my wife turns 65 next month. My FRA benefit is 2600 and my wife’s FRA benefit is 1100. Neither of us have applied for benefits and we’re considering the following strategy upon our birthdays next month:
My wife take her own benefit at 65, allowing me to take a spousal benefit simultaneously. I then switch to my own benefit at age 70, which will be 132% of my FRA benefit.
What are pros, cons and potential alternatives to this strategy? Much appreciated!

Hi,

It sounds like the only downside to your proposed strategy would be that your wife would be stuck with a reduced benefit rate for as long as both of you are living. The percentage reduction for filing for retirement benefits 12 months prior to full retirement age (FRA) is roughly 6.67%.

The main upside is that your proposed strategy would allow you to receive a spousal benefit of 50% of your wife's FRA rate (PIA) for 4 years before switching to your own record at age 70. Before filing, you and your wife should strongly consider using our maximization software to compare all of your options and determine which of them the two of you are most comfortable with.

Best, Jerry