My wife and I were each born in 1955. My wife is 7 months older than me. My wife’s will draw social security in may 2021at full retirement of $1150.00 per month on her own account. I will take my social security at age 70 estimated to be approximately $3700 per month. My estimated social security at my full retirement is estimated to be $2780. What will be my wife’s spousal benefit ( or full benefit ) amount when I draw ss at 70.

Will it be for example , half of my then previous full retirement benefit of Of $1390. Will it be half of $3,700. Will it be half of my estimated full retirement benefit of $1,390 increased for the cost of living occurring during the 46 months between my full retirement age and my being 70 years of age.
I read article after article referring to the PIA.

Seems unfair that SS will look back to the full retirement age benefit 46 months earlier in determine my wife’s spousal benefits.

Use real numbers as you can in assisting me to understanding the social security to be received by my wife presuming my benefit at 70 will be$3,700 per month.

Thank you.

Hi. Spousal benefits are calculated based on 50% of the worker's primary insurance amount (PIA), regardless of when the worker applies for their benefits. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA). Also, spousal benefits can't be paid for any months prior to when the worker starts drawing their benefits.

A person can only be paid up to the higher of their own Social Security retirement benefit rate or 50% of their spouse's PIA, so when you apply for your benefits your wife's spousal rate will be calculated by subtracting her PIA from 50% of your PIA. So, if her PIA is $1150 and your PIA is $2780, your wife's unreduced spousal rate would be $240 (i.e. $2780/2 - $1150). That excess spousal rate would be paid in addition to your wife's own benefit rate, so if she starts drawing her own benefit of $1150 at FRA her rate would be bumped up to a total of roughly $1390 (i.e. 50% of your PIA) when you start drawing your benefits.

I should point out, that widow's benefits can be calculated based on 100% of the deceased worker's benefit rate including any applicable delayed retirement credits (DRC). Therefore, if you wait until age 70 to start drawing your benefits and you subsequently die with a benefit rate of $3700, your widow could be paid up to that full amount. Your widow couldn't get both her own benefit and your full benefit, though, just the higher of the 2 amounts.

You and your wife may want to consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry