Larry,
I'm 67 years old and still working. I plan to retire soon but want to defer taking my SS retirement benefit until age 70 to get the increased benefit amount over the 4 year deferral period. My wife is 62 and recently was put on long term disability by her employer; her application for Social Security disability is in the process of being filed, and we anticipate it will be approved. This past April in order to protect any rights my wife may have to restrict her application, I filed an application with SS and then immediately suspended it (file and suspend).

My question is this, if my wife is receiving SSD at age 62 am I eligible for a SSD spousal benefit without it having a negative impact on my retirement benefit payable when I take it at age 70? We both earn about the same amount annually.

Also does her SSD automatically change to a retirement benefit when she reaches FRA (66)? If so, can she request that her SSD be terminated just prior to reaching age 66 and then file and suspend or defer taking her retirement benefit until age 70 and still receive the 32% added benefit accrued between 66 and 70?

Hi,

Since you've already filed on your own record, you can't receive spousal benefits unless 1/2 of your wife's SSDI (or full retirement age) benefit is more than your own benefit amount. This is true regardless of the fact that you've suspended your benefit. However, since you filed within the past 12 months, you do have the option of withdrawing your application and filing a restricted application for spousal benefits only. Your wife, though, would have to be approved for disability benefits, or file for reduced retirement benefits in order for you to be eligible as her spouse. The downside of withdrawing is that your wife won't be able to receive spousal benefits on your record at least until you reapply and start drawing your benefits. But, she may not be able to draw spousal benefits anyway, if her disability benefit is more than 1/2 of your full retirement age benefit.

Your wife can't voluntarily terminate her Social Security disability benefits after they've started. She could withdraw her application, but she'd have to repay any benefits that she's received up to the time of the withdrawal. She's probably better off to go ahead and pursue her disability claim. If it's approved, she will start receiving the equivalent of her full retirement benefit paid early. She could then voluntarily suspend her benefits when they convert to retirement benefits at her full retirement age, then resume them at age 70 and receive a 32% higher benefit amount.

Your situation is actually pretty complex, and there are a number of different strategies that could be employed. Which strategy is best depends on a number of factors, so you may want to run the maximization software available on this website to determine which strategy is best for you and your wife.

Best, Jerry