My wife took early social security at reduced rate age 64. Her birth date ie 7/16/1953. I plan to retire this December at 66 and 2 months my full retirement date(10/20/55. I have been told by SS that my wife due to her birth date will be allowed to collect on my SS at 1/2 what I received
Which will be a tremendous increase. Can you confirm this and explain why .
Thank You

Hi. Not exactly. Since your wife was born prior to January 2 1954, if she hadn't already applied for her own benefits she could have filed a restricted application for just spousal benefits when you start drawing your benefits. In that event she would have been paid 50% of your primary insurance amount (PIA). A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA).

However, since your wife has already started collecting her own benefits then she can only be paid spousal benefits if your PIA is more than twice as much as her own PIA. If it is, then when you start drawing your benefits your wife would be eligible for an excess spousal benefit that would be paid in addition to her own benefit. But, she'll retain the reduction that she took on her own benefit in order to start drawing early.

For example, say Amy filed for her benefits in 2017 at age 64. Amy's PIA is $600, but Amy's rate is reduced for age to $520. This year, when Amy is 68, her husband applies for his benefits. Amy's husband's PIA is $2000, so Amy's unreduced excess spousal rate is calculated by subtracting her PIA from 50% of her husband's PIA. In Amy's case, that amounts to $400 (i.e. $2000/2 - $600). Amy's excess spousal rate is not reduced for age since she was already at least FRA when she became eligible for the spousal benefit. Therefore, Amy is then paid her full excess spousal benefit in addition to her own reduced benefit, giving her a combined benefit amount of $920 (i.e. $520 + $400),

Best, Jerry