Hi. I am waiting on receiving social security benefits until age 70 (I am currently 68). My wife is 62 and has not worked outside the home. I understand my wife will receive at her full retirement age (66+) 50% of what my social security benefits were at my full retirement age (66). My question is: is that amount locked in at what my age 66 benefit would have been if I had elected to draw at that time, or does that amount increase every year based on any COLA increases?
Thanks for the information.

Hi,

Actually, if your wife files for her spousal benefits at full retirement age (FRA), what she'll receive is 50% of your primary insurance amount (PIA). A person's PIA is equal to the amount of their Social Security retirement benefit if they start drawing at FRA, but it is not a stagnant figure. PIAs can be increased by additional earnings or by Social Security cost of living increases (COLA). You will receive credit for any Social Security COLAs occurring after you reached age 62, and your PIA will be adjusted accordingly.

Therefore, if your wife files at FRA her unreduced spousal rate will start out at 50% of whatever your PIA is at that time, and it will increase thereafter to reflect Social Security COLAs.

Best, Jerry