My PIA is estimated to be about $3,000 at age 67. My wife's about $400. We are both currently 61. I plan to start my social security at age 70. Should my wife file for her own social security at 67 snf then apply for spousal benefits on my record when she turns 70 or is there a better approach?

Hi,

That's certainly an option. Since your wife's primary insurance amount (PIA) is substantially less than 50% of your PIA, she definitely wouldn't want to wait past her full retirement age (FRA) to start drawing her own benefits. If she starts drawing her benefits at FRA, she'll then be able to receive a full 50% of your PIA when you start drawing your benefits at age 70. Your wife could alternatively start drawing her own benefits as early as age 62, but if she starts drawing her own benefits prior to FRA she'll retain the reduction for age applied to her benefit rate for as long as both of you are living.

For example, say Joy files for her benefits in 2022 at age 62. Joy's primary insurance amount (PIA), or full retirement age rate, would be $400, but her rate is reduced for age to $281. Eight years late after Joy has reached FRA, her husband applies for his benefits. Joy's husband's PIA is $3000, and Joy's unreduced excess spousal rate is calculated by subtracting her PIA from 50% of her husband's PIA. In Joy's case, that amounts to $1100 (i.e. $3000/2 - $400). No reduction is applied to Joy's excess spousal benefit because she wasn't eligible for those prior to FRA, but her own benefit rate continues to be reduced for age. So, Joy's combined benefit rate $1381 (i.e. $281 + $1100). If Joy had instead waited until FRA to start drawing her own benefits, her combined rate would be $1500 (i.e. $400 + $1100).

You and your wife may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing benefits.

Best, Jerry