I am 59 (born 1/59) and my wife is 64 (born 2/54). Her SS benefit is very small because she has mostly been out of the workforce. We will need to maximize our monthly benefit in retirement. I plan to work to 70, health permitting, in order to do maximize my benefit. If she files for her benefit now, is she still eligible to take her spousal benefit when I retire? If she waits 19 months until her FRA, how does it affect her spousal benefit when I retire?

Hi,

If your wife files for reduced benefits on her own record now, she could still potentially file for spousal benefits when you file for your benefits. But, she'd only be eligible for spousal benefits if 50% of your full retirement age rate (PIA) is higher than her own PIA, and her own retirement benefit rate would continue to be reduced.

For example, say Beth has a full retirement age rate (PIA) of $500, but starts drawing 19 months before her full retirement age (FRA) and receives a reduced rate of $447. Beth's husband files for his benefits 10 years later, and he has a PIA of $2000. Beth would then become eligible for an additional spousal benefit of $500, which would be calculated by subtracting her PIA from 50% of her husband's PIA. Thus, Beth's combined benefit rate would then be $947 (i.e. $447 + $500).

If Beth in the example above waited until FRA to file for her retirement benefits, the only difference is that she would then initially receive her unreduced rate of $500 and her combined rate after becoming eligible for spousal benefits would be $1000.

You and your wife have numerous possible filing options available to you, so you should strongly consider using our maximization software to determine your best strategy.

Best, Jerry