My wife is considering collecting SSA at 62 in 2023, $780 reduced benefit. I intend on collecting in 2023 as well with my FRA in September 2023, $3087. When can she collect her spousal benefit and how is her benefit calculated?
Thank you

Hi. Your wife can potentially qualify for spousal benefits as early as the LATER of a) the first month that she's age 62 for an entire month, or b) your first month of entitlement to Social Security retirement or disability benefits. In other words, your wife must be at least age 62 for an entire month and you must be collecting your benefits in order for her to potentially receive spousal benefits.

Unreduced spousal benefits are calculated by subtracting a person's own primary insurance amount (PIA) from 50% of their spouse's PIA. A person's PIA is equal to their Social Security retirement benefit rate if they start drawing their benefits at full retirement age (FRA). But, if the person starts drawing spousal benefits prior to their full retirement age (FRA), then their spousal rate is reduced for age.

Here's an example. Let's say Joy files for her Social Security retirement benefits at age 62. Joy's PIA, which is equal to the amount she'd be eligible for if she started drawing her benefits at full retirement age (FRA), is $1000. But, Joy's benefit rate is reduced for age to $700 because she's claiming her benefits at age 62. Six months later Joy's spouse applies for his benefits, and his PIA is $3000. Joy's unreduced excess spousal benefit would then be calculated by subtracting her PIA from 50% of her husband's PIA, which in Joy's case amounts to $500 (i.e. $3000/2 - $1000). However, since Joy is starting spousal benefits at age 62 1/2, her spousal rate is reduced to $337. Joy would then be paid the reduced spousal amount of $337 in addition to her own reduced rate of $700 to give her a combined rate of $1037.

Before deciding when to start drawing benefits, you and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options so that you can determine the best overall strategy for maximizing your benefits.

Best, Jerry