I am currently 62 and I am looking to file for my Soc Sec benefits when I turn 63 (my FRA is 67). My spouse (59 at this time) has paying into SSA and is eligible for benefits on her own right. My question is, when she turns 62, can she get the higher of either her own benefits or the 50% of the amount that I am eligible for when I file? Will she get 50% of my payout when I file (well before FRA) or will she get less than 50%? Thank you!

Hi. If you're already collecting your benefits when your wife files for benefits, then she would end up receiving essentially the higher of her own benefit rate or her spousal rate. But, if 50% of your primary insurance amount (PIA) is more than your wife's own PIA, what she'll receive is her own benefit rate plus a partial spousal benefit. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA). And, if your wife claims benefits prior to her full retirement age (FRA), both her own rate and her spousal rate would be reduced for age.

Unreduced spousal benefits are calculated starting with 50% of the worker's PIA, not 50% of the worker's actual benefit amount. But, if a person claims spousal benefits prior to FRA, then their spousal rate is reduced for age. The reduction for age that applies to the spousal benefit is calculated independently from any reduction for age that applies to the benefit rate of the worker on whose record the spousal benefits are paid.

For example, lets say Joe files for his retirement benefits at age 63. Joe's FRA is age 67, and his PIA is $2000. Since Joe is claiming benefits 4 years prior to FRA, his benefit rate is reduced to $1500. A few years later Joe's wife Jane applies for her benefits at age 62. Jane's PIA is $800, but her rate is reduced for age to $563. Since Jane's PIA is less than 50% of Joe's PIA, Jane is also eligible for a partial spousal benefit. Jane's unreduced spousal rate is calculated by subtracting her PIA from 50% of Joe's PIA, which in her case is $200 (i.e. $2000/2 - $800). However, that amount is reduced to $130 since Jane is filing at age 62. Jane would then be paid her own reduced rate plus her reduced spousal rate to give her a combined rate of $693 (i.e. $563 + $130.

Note that if Jane in our example above had waited until FRA to start drawing benefits, she could have received an unreduced combined benefit rate equal to 50% of Joe's PIA, or $1000 (i.e. $800 + $200).

Another important factor for you and your wife to consider is that widow's benefit rates are limited to the higher of a) the deceased worker's actual benefit amount, or b) 82.5% of the deceased worker's PIA. So, if your benefit rate will be higher than your wife's benefit rate and if you start drawing your benefits early, you'll be reducing the amount that your wife could potentially receive as a widow.

Before making any decisions about when to apply for benefits, 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 determine the best overall strategy for maximizing your benefits.

Best, Jerry