In Nov of 2018 I reached my FRA of 66; my wife will reach FRA in Jan, 2019. Both my wife and I began receiving our reduced benefits in 2013, at age 62. It was our understanding at the time we applied that her benefit was based on my earnings record. In a conversation with a local S.S. rep since then, I was told that my wife's benefit was based on her own earnings record, not mine. With that confusion as a lead-in, I have returned to work and I intend to suspend my benefit until I reach age 70. We realize that my wife's benefit will also be suspended if it is based on my earnings record, and if that is what happens, would she be allowed to re-file using her own earnings record so that she could continue to receive benefits?

Thanks in advance for any input you can offer.

Hi,

Since your wife filed for benefits prior to full retirement age (FRA), she would have been deemed to have filed for her own Social Security retirement benefits at the same time she applied for spousal benefits. Therefore, it doesn't sound like there would be any need to for her to refile. If your wife has been receiving both retirement and spousal benefits, then her spousal benefits would be suspended if and when you suspend your benefits but her own retirement benefits would continue to be paid.

For example, say Jack was born in November 1952 and files for Social Security retirement benefits effective January 2015. Jack's primary insurance amount (PIA) is $2000, which is equal to the amount that he'd receive if he waited until FRA to start drawing his benefits. But since Jack is starting his benefits early, he is paid a reduced rate of $1516.

Jack's wife Jill was born on January 2 1953, and she decides to file for her retirement benefits effective with January 2015. Jill's PIA is $500, but she receives a reduced rate of $375 in return for starting her benefits at age 62. Since Jill's PIA is less than 50% of Jack's PIA, Jill is deemed to have also applied for spousal benefits effective with January 2015. Jill's unreduced spousal rate is calculated by subtracting her PIA from 50% of Jack's PIA, which in this example is $500 (i.e. $2000/2 - $500). However, Jill's spousal rate is reduced to $350 because she started drawing at age 62. Jill is then paid a combined benefit rate of $725 (i.e. $375 + $350).

When Jack reaches his FRA of age 66 in November 2018, he decides to voluntarily suspend his benefits in order to earn delayed retirement credits (DRC). Based on the regulations passed by Congress in 2015 (https://www.ssa.gov/planners/retire/suspendfaq.html), Jill's spousal benefits will be suspended for as long as Jack's benefits are in suspense. However, Jill's own retirement benefits would continue to be paid. So, in this example Jill would continue to receive her $375 monthly retirement benefit, but her $350 spousal benefit would be suspended until Jack reinstates his benefits.

You and your wife may want to strongly consider using our software to compare your options so that you can decide which strategy would likely be best in your case.

Best, Jerry