Larry, Our plan is for my wife to take SS early at 62 and for me to take SS at 70.
Will this have any financial impact on the amount my spouse receives starting at 70 with a spousal benefit? And our combined Social Security.
I have run the software and it appears there is a difference. I am trying to understand why.
Would there be a financial benefit for her to wait till FRA?
Thanks

Hi,

If your wife starts drawing her retirement benefits at age 62, she will continue to receive a reduced benefit rate even if she later becomes eligible for spousal benefits on your record. Any additional spousal benefit would be calculated independently depending on her age at the time she becomes eligible for the spousal benefit.

For example, say Jane files for retirement benefits at age 62 and receives a reduced rate of $370 based on her full retirement age rate (PIA) of $500. Her husband John files for his benefits when Jane is full retirement age (FRA). John's PIA is $2000, so Jane would be eligible for an additional unreduced spousal benefit of $500 (i.e. 50% of John's PIA minus her own PIA). The $500 excess spousal benefit would then be added to Jane's $370 reduced retirement rate to give her a combined benefit amount of $870. If Jane had instead waited until FRA to start drawing her retirement benefits, her combined rate would have been $1000 (i.e. $500 + $500).

Best, Jerry