Referencing Chapter 16 gotcha #2 on pg 261 and gotchas #4 & 6 on pg 262 in your Revised Get What's Yours Social Security book.
FACTS: My wife was born in August 1955 so reached her FRA Nov. 1, 2021. She was home raising children until they went off to college. She has her own social security retirement amount of about $900 per month (i.e. she has satisfied the 40 quarters). My PIA is about $3,000 so the spousal benefit is about $1,500. I was born in March 1954 and still working part time with the hope of not drawing my social security until I'm 70 - at your advice (my father lived to be 91 and my mother 96). I have read your book and am confused. I understand that my wife cannot draw my spousal benefit of $1,500 per month until I begin drawing my social security which we hope will not be until March 2024. What I do not fully understand is the "deeming" issue once my wife files to draw her social security.
QUESTION: Can my wife file to begin collecting her $900 monthly social security retirement benefit effective Nov. 1, 2021, and then in March 2024, when I begin drawing, will her benefit automatically be increased by social security from the $900 per month to the spousal benefit of $1,500 due to the "deeming" occurring at the date of her initial filing now? Or, does the gotcha # 2 on page 261 apply due to the spousal benefit not being available at the time of her filing now, so she would be stuck with the $900 monthly benefit for her lifetime? Ignoring the COLAs.
I found nothing on the social security website that answered this specific question. And your book has convinced me to not rely on any answer from a social security representative. Especially, if a SS rep would say my wife could file now and get the bump up in March 2024, we would not know if the social security rep gave us correct advice until March of 2024.
Thank you for your help. Your book is a wealth of information - thank you for that!
Dick
Hi Dick. No, it won't be automatic, but once you file for your benefits it sounds like your wife will be eligible for an excess spousal benefit in addition to her own benefit. Gotcha #2 states that once you file for your own Social Security retirement benefits you can never take an auxiliary or survivor benefit BY ITSELF. You can, however, potentially file for your own benefit first and later qualify for an additional excess spousal or survivor benefit.
Your wife can and likely should apply for her own benefits now and then when you start drawing your benefits she can apply for an excess spousal benefit. Her excess spousal rate will be calculated by subtracting her primary insurance amount (PIA) from 50% of your PIA, and that excess spousal benefit will then be paid in addition to her own benefit rate. And, since your wife didn't start drawing her own benefits prior to her full retirement age (FRA), her combined benefit rate will add up to 50% of your PIA she starts drawing her excess spousal amount.
By the way, if your wife was born in August 1955 and on any day other than August 1st, her FRA is October 2021. If she was born on August 1 1955 then her FRA would be September 2021. Based on the PIAs listed in your question it sounds clear that you wife should claim her own benefits effective with her FRA month and then claim an excess spousal benefit when you file for your benefits. You may want to verify that using our software (https://maximizemysocialsecurity.com/purchase), though.
When you do file for your benefits, your wife will have to file an application in order to become entitled to an excess spousal benefit. Even though she'll be deemed to have applied for spousal benefits when she files for her own benefits, she'll still need to file a separate application for spousal benefits. Since the requirements are different for the two types of benefits, separate applications are required.
Best, Jerry
