Hi Larry,
My husband and I are very perplexed about Spousal Benefits at the moment.

I was told exactly what you just described in your example of a couple. The wife started receiving benefits at 62 on her own work record, her PIA was 600 but she received 400 because of starting early. Her husband began drawing on his social security at 70. His PIA was 2000.

You gave the exact calculation on how to determine what her Spousal Benefit would be. I was given the exact calculation by a Social Security Representative when I was 62.

I began drawing Social Security at 62. My PIA was 644, I received d 491.57 for starting early. I plan to apply for a spousal benefit next year after my husband begins drawing social security. (He will be 65 in October of 22. I will be 65 also in Sept).

His PIA is 3080. If I do what both you and she said I would take 3080 / 2 -644.00, which would equal 896 and add it to my current Social Security Payment which is now 505 due to inflation for a total of 1401.00. Is this correct?

When I talked to a SS rep today he told me I will only be eligible for 35% of my husbands PIA in a spousal benefit because I began drawing my own social security at age 62. This is a huge difference.

I am so curious what you may think of this? Thanks, Kerry

Hi Kerry. You have the basic math down, but if you become eligible for an excess spousal benefit prior to your full retirement age (FRA) your excess spousal rate will be reduced for age. However, the percentage reduction that would be applied to your excess spousal rate would be much lower than the Social Security representative that you spoke with mentioned. The actual reduction rate that will be applied to your excess spousal amount will be calculated based on your age at the time you become eligible for the excess spousal benefit.

Your first month of spousal benefit eligibility will be month that your husband claims his benefits. If you turn 65 in September 2022 and if your husband starts drawing his benefits effective October 2022, then your unreduced excess spousal rate would be reduced for age by roughly 12%. Your unreduced excess spousal rate would be calculated by subtracting your primary insurance amount (PIA) from 50% of your husband's PIA.

You can't choose to wait until your FRA in order to get an unreduced excess spousal benefit. When you applied for your own benefits that application was also deemed to be an application for spousal benefits as soon as you are first eligible. Therefore, the only way that you could get an unreduced excess spousal benefit is if your husband doesn't claim his benefits prior to when you reach your FRA.

Your husband may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of his options in order to determine the best way to maximize both of your benefits.

Best, Jerry