I'm hearing about spousal benefits for the first time, and don't know anything about it. I am 62, and still working. My wife Barbara is 62 and retired, not collecting SS yet. I plan on retiring July 2019, at the age of 64, and starting to collect my SS at that point. Should my wife wait to collect her SS until that time, as well, and can she apply for spousal benefits? My SS payment at that time is approximately 25K, and hers is approximately 7K.
If she were to collect spousal benefits, does it in any way reduce my payment?
Thanks.

Hi,

It sounds like your wife would qualify for some spousal benefits when you start drawing your benefits, but she couldn't get spousal benefits without also filing for her own benefits. What she would then receive is essentially the higher of the two benefit rates, and the rate will be reduced if she starts drawing prior to full retirement age (FRA). Your wife's receipt of spousal benefits would not reduce your benefit rate.

Your wife could file for her own benefits now and then for additional spousal benefits when you file for your benefits. In that case each benefit would be reduced separately based on her age at the time she becomes entitled to the benefit. You and your wife should strongly consider using our software to explore and compare your filing options in order to determine your best overall strategy.

Best, Jerry