Hi, I have a quick question about Excess Spousal Benefits. If I draw spousal benefits early will my benefit be reduced due to not waiting until I am 66 1/2? I was told it would. When I asked what the percent was that it was reduced by I was told the rep did not know. she said she enters it into a software program and it just tells her the amount I would draw. She said i am eligible to up to the full 50% of PIA if I were to waiting until age 66 1/2, but we may not be able to wait that long. One rep said there is no reduction to my husbands PIA because of drawing Spousal Benefits early, another says there is. What is the correct answer and were might I find this please?

Hi. Yes. Spousal and excess spousal benefits are reduced for age unless you start drawing them at your full retirement age (FRA) or later. The reduction percentage is 25/36ths of 1% for the first 36 months of reduction, and 5/12% of 1% for each additional month of reduction. So, for example, if a person starts drawing spousal benefits 48 months prior to FRA, their spousal rate would be reduced by 30% (i.e. 25/36 x 36 months + 5/12 x 12 months). The pertinent reference from Social Security's operations manual can be found here: https://secure.ssa.gov/apps10/poms.nsf/lnx/0300615201.

A worker's primary insurance amount (PIA) isn't reduced if their spouse receives spousal benefits. Spousal benefits are auxiliary benefits paid in addition to the worker's benefit, they don't take away from the worker's benefit. In other words, your husband's benefit rate won't be affected by you drawing spousal benefits, but if he starts drawing his benefits prior to FRA then his benefit rate will be reduced for age.

Best, Jerry