If I retire next July at 66, (which I won't) I would receive $2K/month. My wife who is older than me (70) is already receiving $700/month. Should I collect half of her PIA next July or can she collect half of mine even though I am still working. Also, if I start collecting on her amount, can I sign up several months early without having to refund some of the money? I will be earning over the max limit by next July.
Thanks,
Mike

Hi Mike,

You can't start drawing spousal benefits before full retirement age (FRA), which for you is age 66, without being deemed to also be filing on your own record. Since your own benefit is much higher than half of your wife's, that would result in zero in spousal benefits for you.

What you should probably do is file a restricted application for spousal benefits only when you reach age 66, then file on your own account at age 70 at which time your wife could also apply for an excess spousal benefit. If you wait until age 70 to take your benefit, delayed retirement credits will raise your benefit by 32%, or to around $2640 per month. That increase would also carry over to the potential widow's benefit your wife would receive if you die first.

You didn't say when your wife started drawing her benefits, but if she took them at age 62, she may not be eligible for much of an excess spousal benefit from your record. Spousal benefits are calculated starting with one-half of the worker's full retirement age benefit (PIA), and subtracting the spouse's own PIA. If your wife took reduced benefits, her PIA could be very close to half of your PIA, or $1000. If, on the other hand, your wife started drawing her benefit at FRA and her PIA is $700, she could be eligible for an additional $300 or so from your account when you file.

You may wish to consider running the maximization software available on this website in order to better understand your options.

Best, Jerry