Just finished your book and I'm a converted break even analyst. I plan on waiting to age 70 to collect. However, I couldn't find an answer to this question; My wife's earned benefit is less than half what she'll receive as a spousal benefit when I retire at 70. She is a year older than me. Can she start collecting her own benefit at 62 (or 66, 8 mo.) without impacting the spousal benefit she can receive when I start collecting at age 70? I read all about "deeming" but she's can't claim a spousal benefit until I start collecting at age 70, right?

Hi,

You're right that your wife couldn't claim spousal benefits until you start drawing your benefits. She can start drawing her own benefits at any time starting at age 62, but if she files before her full retirement age (FRA) her benefit rate will be reduced and she will keep that reduction even if she later becomes eligible for spousal benefits.

For example, say Mindy files for her benefits at age 62. Mindy's full retirement age rate or primary insurance amount (PIA) is $800, but she receives a reduced rate of $575 in return for starting her benefits early. When Mindy is age 71, her husband files for his Social Security benefits with a PIA of $2000. Mindy's spousal rate would be determined by subtracting her PIA from 50% of her husband's PIA, which would be $200 in this example (i.e. $2000/2 - $800). That $200 would then be added to Mindy's own reduced retirement rate to give her a combined benefit amount of $775.

You and your wife should strongly consider using our maximization software to fully explore and compare your options in order to determine your overall best strategy for claiming your benefits.

Best, Jerry