Hello Larry and Jerry:

My wife will turn 62 next month and we are thinking about filing for her social security benefits. According to the statement she received from social security in 2020, her benefit if she starts at 62 will be $538/month ($756/month if she starts at her FRA, 66 years and 10 months). She is not working currently and is not planning to go back to work. I am over 70, retired and started receiving my social security at age 70 after contributing into the system at the maximum level for over 35 years. I have two queries. If she files for social security now, will she be able to get half of what I would have received at my FRA (66 years) reduced appropriately for her current age? The second question is regarding survivor benefits. As a survivor, is my wife eligible to get what I was receiving at that point in time (i.e. the age 70 pay out with cost of living adjustment), if she is at or past her FRA at that time? I presume that her survivor benefit will be adjusted for her age, if she is below her FRA. Also, will her survivor benefit be affected by taking spousal benefit at an age earlier than her FRA?

Thank you very much.

Hi,

No, your wife won't get a full 50% of your full retirement age (FRA) rate, or primary insurance amount (PIA), if she files for benefits at age 62. Since your wife was born after January 1 1954, she'll be deemed to be filing for both her own benefits and for spousal benefits whenever she applies for either benefit. And, if she starts drawing prior to FRA her benefit rate will be reduced for age.

For example, say Barb files for benefits this year at age 62. Barb's PIA is $750, but her benefit rate is reduced for age to $534. Barb's husband is drawing his benefits, and his PIA is $2900. Barb's unreduced excess spousal benefit rate is calculated by subtracting her PIA from 50% of her husband's PIA, which in Barb's case is $700 (i.e. $2900/2 - $750). However, Barb's spousal amount is reduced for age to $463. Barb would then be paid both reduced benefits for a combined rate of $997 (i.e. $534 + $463). If Barb had instead waited until FRA to file for benefits she would have gotten a full 50% of her husband's PIA, or $1450 (i.e. $750 + $700).

You are correct that if you die before your wife and if she's at least FRA when she starts drawing survivor benefits, she would get your full benefit rate including the delayed retirement credits (DRC) you earned by waiting until age 70 to start drawing your benefits. That would be true regardless of at what age your wife starts drawing her benefits and her spousal benefits. Note that she wouldn't get both her own rate and your rate in the event of your death, though, just the higher of the 2 amounts. If you die before your wife reaches FRA, her survivor rate would be reduced for age if she chooses to start drawing the survivor benefits prior to her FRA.

You and your wife may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze your wife's options so that she can choose the best strategy for maximizing her benefits.

Best, Jerry