Let me begin with thank you. I (bob 7/20/1955) will be 66 and 2 months on October 2021, my FRA. And I am thinking of collecting then. My wife (Donna 8/4/60) is on full disability.
When does my wife's disability convert to social security? When can she/we begin collecting spousal benefits? My social security will be about $2,550. Donna currently receives $941. Spousal benefit should be $1,225. Ish. Much appreciated.
Bob
Hi Bob,
Your wife's Social Security disability (SSDI) benefits will convert to regular Social Security retirement benefits when she reaches her full retirement age (FRA) of 67. Her benefit rate won't change as a result of the conversion, though.
Donna could qualify for an excess spousal benefit beginning with the later of a) the first month that you claim your benefits, or b) the first month that she's age 62 for a whole month (i.e. September 2022). However, if she starts drawing her excess spousal benefits prior to FRA her excess spousal rate will be reduced for age.
For example, let's say that you're drawing your benefits when your wife reaches age 62 and that your primary insurance amount (PIA) is $2,550. A person's PIA, by the way, is equal to their Social Security retirement benefit rate if they start drawing benefits at FRA, or their full SSDI rate. When your wife files for spousal benefits, her unreduced excess spousal rate would be calculated by subtracting her PIA from 50% of your PIA. So, if her PIA is $941 her excess spousal rate would be $334 (i.e. $2550/2 - $941).
If your wife waits until FRA to start drawing her excess spousal benefits, she would be paid her unreduced excess spousal benefit in addition to her own benefit, giving her a combined rate of $1275 (i.e. $941 + $334). However, if Donna starts drawing her excess spousal benefit when she turns 62 her rate will be reduced for age to roughly $218. That would then be paid in addition to her own SSDI benefit, giving her a combined benefit amount of $1159.
Remember, though, that the amounts shown above are just examples based on the benefit rates shown in your question. Your actual benefit rates will depend on your and your wife's exact PIAs and when you choose to start drawing your benefits.
I should also mention that if you die before your wife and after she reaches FRA, she'd be eligible for the higher of her own benefit rate or your benefit rate. So, the longer that you wait until age 70 to start drawing your benefits, the higher her monthly survivor rate would be. You and Donna may want to consider using our software (https://maximizemysocialsecurity.com/purchase) to fully explore and compare all of your various options so that you can choose the best possible strategy for maximizing your benefits.
Best, Jerry
