I am 70.5 years old man receiving my full Social Security benefits. My wife is 62.5 years old. She has worked and is eligible to receive her own Social Security benefits based on her payments into Social Security. She has not yet applied for Social Security benefits nor is she on Medicare. My current benefits are more than double the benefits she would receive on her own if she would apply now. So, my question is this: If she would apply now what benefits would she receive? Would it be just her own benefits or would she receive a combination of benefits equaling half of mine? If she would only receive her own benefits now would she start to receive a combination of benefits equaling half of mine at her full retirement age (66+2 months). Thanks for your help

Hi,

Since your wife was born after January 1 1954, whenever she files for either retirement benefits or spousal benefits she'll be deemed to be filing for both. And, if she files before her full retirement age (FRA) her benefit rate(s) will be reduced for age. Furthermore, your wife could only qualify for spousal benefits if 50% of your full retirement age rate (PIA) is higher than her own PIA. For example:

Beth's full retirement age rate (PIA) is $800, but she files for reduced benefits at age 62.5 instead. Her husband is already drawing his benefits and his PIA is $2000. Beth's unreduced spousal benefit would be calculated by subtracting her PIA from half of her husband's PIA, which in her case is $200 (i.e. $2000/2 - $800).

If Beth waited until she was FRA to apply she would receive an unreduced combined rate of $1000 (i.e. $800 + $200), or a full half of her husband's PIA. But since Beth filed at age 62.5 her own rate would be reduced by roughly 24% and her spousal rate would be reduced by roughly 29%. That would reduce Beth's retirement rate to $613 and her spousal rate to $143, resulting in a combined benefit rate of $756.

Your wife's best strategy depends on a number of factors, so you should strongly consider using our maximization software to compare all of her options and determine the strategy that would be best in your case.

Best, Jerry