I am considering retiring this January at 66 years and 6 months, My wife who is 63 started taking her benefit at 62. My benefit would pay$2644, She currently gets $679 for the past 11 months. Will she get a higher payment once I retire? If so,how much??

Sincerely

Kelly

Hi Kelly. Yes, it sounds like your wife will be eligible for some additional spousal benefits once you start collecting your Social Security retirement benefits. Your wife's unreduced spousal rate would 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). However, if your wife hasn't reached her FRA by the time you start drawing your benefits, then her spousal rate will be reduced for age.

For example purposes, let's say your PIA is $2600, and your wife's PIA is $950. Her unreduced spousal rate would then be $350 (i.e. $2600/2 - $950), but that amount would be reduced for age unless she's at least FRA when you start drawing your benefits. For example, if you start drawing your benefits in the month your wife turns 63, the $350 unreduced amount in our example would be reduced for age to roughly $248. That amount would then be paid in addition to your wife's own reduced benefit rate.

Another thing that you should consider when deciding when to start your benefits is the effect that will have on your wife's potential survivor benefit rate. The surviving member of a couple can be paid up to the higher of their own benefit rate or their deceased spouse's benefit rate, so if you start drawing your benefits now as opposed to at age 70 you'll significantly lower the monthly rate that your wife could be paid if you die before her.

You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options so that you can determine your best strategy for maximizing benefits for you and your wife.

Best, Jerry