My retired wife is 65 (Nov 2021), I am 66 (June of 2021). We are financially set. I will retire and the end of 2021 but may work on 1099 for one year. My understanding is If I take SS at 70, and my wife takes her own benefit now (pretty low), It will reduce her spousal benefits when she reaches FRA. Am I correct?. Would this also affect the Family max?

Hi. Your wife's eventual spousal benefit wouldn't be reduced if she starts drawing her benefits now, but she'd keep the reduction for age applied to her own benefit even after she becomes eligible for spousal benefits.

For example, say Amy files for her benefits this year at age 65. Amy's primary insurance amount (PIA), or full retirement age (FRA) rate, would be $800, but Amy's rate is reduced for age to $728. Four years later when Amy is 68, her husband applies for his benefits. Amy's husband's PIA is $2000, so Amy's unreduced excess spousal rate is calculated by subtracting her PIA from 50% of her husband's PIA. In Amy's case, that amounts to $200 (i.e. $2000/2 - $800). Amy's spousal benefit wouldn't be reduced for age since she had already reached FRA by the time she became eligible for spousal benefits. But, her unreduced excess spousal benefit amount would then be added to Amy's own reduced rate to give her a combined rate of $928 (i.e. $728 + $200).

You and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry