My wife is 61 will be 62 in January...she worked for about 16 years. The company sold the business a few years back and she took early retirement collecting a pension. The company added to the pension and that will run out when she is 63. She file for ss under her work record. I am 61 and will be 62 in May. I plan to work till I am 70. Also I have been working lots of overtime and not sure how much longer the overtime will last. I figure I can make about an extra $100,000 in overtime till I am 70. What is the best way for her to collect ss now at 62....when she turns 66...or when I turn 66 and put in a claim against my ss? When I turn 66 do I file/suspend so she can get file under my account and get a higher payout?

Hi,

Well, if your wife's full retirement age benefit will be less than one-half of yours, she would probably not want to wait past full retirement age to start drawing on her own. If she starts drawing before full retirement age, though, her monthly rate will be reduced for as long as both of you are living. The amount of the reduction would depend on how soon she starts taking her benefit. If she starts right at age 62, the reduction amount would be between 25-26%.

When you file for your benefits, your wife may also become eligible for an excess spousal benefit on your account. The excess spousal benefit would be equal to the difference between 50% of your full retirement age benefit amount and her own full retirement age benefit amount, but this excess would also be reduced if she becomes eligible for it prior to her full retirement age.

It would likely not do any good for you to file and suspend your benefits at full retirement age. Based on the new law passed by Congress last year (https://www.ssa.gov/planners/retire/suspendfaq.html), your wife would not be able to receive any spousal benefits on your account while your benefits are suspended.

You may want to consider running the maximization software available on this website. It should be able to help you determine the best filing strategy for both you and your wife.

Best, Jerry