Hi. I actually bought the software today, thank you! Now I will load my history.
In a previous answer you seemed to be saying that if my wife (who is approx. same age (65) as am I ) files at her FRA of 66 and gets her benefit of say $800/month and if I wait til 70 to file and get $3,000/month, then even though her benefits may only go up very little, say 1% per year, over the 4 years til she is 70, and at that point her benefits are say $840 per month, that her benefits then suddenly jump to $1500 a month (50% of mine) at that time (when she turns 70)?
If so, she should file to collect at FRA and then get a stepup at 70 when I file.
Thanks.
Hi,
Thanks for your purchase. Your understanding is not entirely accurate. The most that your wife could be paid for as long as you're living is the higher of a) her own benefit rate or b) 50% of your primary insurance amount (PIA). A person's PIA is equal to their Social Security retirement benefit rate if they start drawing at full retirement age (FRA). However, if you die before your wife she could be paid up to your full rate as a survivor, so waiting until age 70 to start drawing your benefits could provide your wife with her highest possible survivor rate.
If your benefit rate if you waited until age 70 to start drawing would be $3000, then your PIA is probably closer to $2300. If your wife's PIA is around $800, she could start drawing her benefits when she's FRA, and she could then file for an additional excess spousal benefit when you file for your benefits. Her excess spousal rate would then be calculated by subtracting her own PIA from 50% of your PIA. Her combined benefit rate would then add up to 50% of your PIA, not 50% of your age 70 rate.
You are correct, though, that if your wife's own benefit rate would be less than 50% of your PIA even if she waited until age 70 to file, she wouldn't want to wait past FRA to apply for her own benefits. You can use the software to analyze all of your options in order to verify your best overall filing strategy.
Best, Jerry
