I am 69 (Oct 14, 1946) and just applied for the max SSI ($3200). I was given the opportunity to take a 6 month check of about $18,900 or wait until I turn 70 in October and get about $3150 per month. I took the $18,900.
My wife is 65 (Feb 18, 1951), collecting SSDI of about $1148 and she can just start her retirement SSI of $1148. If we add my amount and her amount. Now, $1148 and $3150 add up to $4298. If she applies for a spousal and gets 1/2 of mine, that is $4725. BUT, there is a max for an account of $4334, I believe. So, for us, the max is a spousal based on my monthly amount? Correct?

The question is, if she does not take her retirement $1148 when she is 66 and take my spousal of $4334 if this is correct, can she then get the max at 70 which would be about $1515 ($1148 times 1.32)?

I hope that I did not cause any confusion and thank you,

Mike

Hi Mike,

First off, your wife doesn't have the option of stopping her own benefits at 66 and receiving spousal benefits instead. Social Security rewrote their rules in December 2014 in order to prevent disabled individuals like her from doing so, and Larry wrote a column about the change: http://www.pbs.org/newshour/making-sense/social-securitys-christmas-pres....

Furthermore, your wife's spousal benefit will be calculated using one-half of your full retirement age benefit amount (PIA), not 1/2 of your age 69 rate inclusive of delayed retirement credits (DRC). And, you needn't worry about the family maximum. The increase in your benefit you received from DRCs does not count toward the family maximum, nor does the benefit your wife receives from her own record.

So, when your wife reaches age 66 her disability benefits will convert to retirement benefits at the same rate. When she reaches age 66, she can also apply for an excess spousal benefit on your record. Her excess spousal benefit will be calculated starting with 1/2 of your PIA, and then subtracting her own PIA. Assuming the $1148 you state in your question is her full disability benefit amount, that would be roughly her PIA. If, however, she has Medicare premiums or taxes withheld, and $1148 is her net payment, her PIA may be as much or more as 1/2 of your PIA, in which case she won't be eligible for an excess spousal benefit.

Your wife basically has 2 options:
1) Voluntarily suspend her benefits when they convert to retirement benefits at age 66, then resume them at age 70; or,
2) Continue receiving her benefits when they convert to retirement at age 66, and file for an excess spousal benefit at that time.

If she chooses strategy #1, she'll receive no payments for 4 years, but her payments will be 32% higher when they resume at age 70. If she chooses #2, she'll continue receiving at least the same amount as now, and possibly also a small excess spousal benefit from your record. Either way if you die first and she is at least age 66 at the time of your death, she would receive your full benefit amount, inclusive of the DRCs you've earned, instead of her own amount.

Best, Jerry