Hi,
I am 67 and my wife is 64. I am waiting until 70 to take Social Security, and currently still working part-time. My wife too is working as a self-employed artist (widely varying salary each year). I was planning on having her start taking benefits next year to pay for her Medicare, but as she is still working, I read that her SS benefits are reduced until FRA, based on our joint income which is well above the minimum. If so, then the formula of the lower earning spouse taking SS early, while the higher earning spouse is waiting until age 70, doesnt work, as our earnings would negate her benefits until she hits FRA. Can you confirm this please? Thank You.

Hi. No, that isn't correct. If your wife claims her Social Security retirement benefits prior to her full retirement age (FRA), only her own earnings would count toward Social Security's earnings test. Your earnings wouldn't count toward the limit. So, whether or not your wife would lose any of her benefits to the earnings test depends on how much she works and earns.

In 2023, people who are under FRA throughout the year can earn up to $21,240 without losing any benefits to the earnings test. For every $2 that their earnings exceed $21,240, $1 of their 2023 benefits would need to be withheld.

Our software is fully programmed to handle earnings test issues, so you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your various options so that you can be sure to choose the best overall strategy for maximizing your benefits.

Best, Jerry