My name is Jeff. I am 67 years old and will wait to 70 years old to begin my Social Security monthly benefit payouts.

My wife is Mary. Her Full Retirement Age (FRA) is 66 years and 10 months. Mary is 4.5 years younger than me, and at present, we plan for her to retire at 65 years and 6 months. Based on current calculations, we think her “reduced” Social Security benefit amount will be less than 50% of my primary insurance amount (PIA). Would my 50% PIA (that could go to Mary as a spousal benefit) also be reduced because Mary retired early?

In my “what if” scenario, I waited to 70 years old, accrued as many of the “delayed retirement credits” as I could up to my age of 70 years old, and began receiving Social Security benefits. If I died at 75 years old, would my surviving spouse (Mary) get my FULL Social Security Monthly Benefit, including the extra dollars due to the “delayed retirement credits” I accrued by waiting to 70? When I am 75 years old Mary will be 70 years old and past her Full Retirement Age of 66 years and 10 months.

I believe I understand that Mary would only get Jeff’s Social Security Monthly Benefit as a survivor, but not her own Social Security benefit and Jeff’s Social Security benefit. Is that correct?

Thanks for looking at my questions. I read “GET WHAT’S YOURS” and enjoyed it.

Hi Jeff. Your wife's spousal benefit rate wouldn't necessarily be reduced if she starts drawing her own benefits early, but any reduction for age applied to her own rate would continue even if she later qualifies for spousal benefits. As a result, in the scenario you present your wife would end up with less than a full 50% of your primary insurance amount (PIA) when you start drawing your benefits.

For example, say Joy files for her Social Security retirement benefits 14 months prior to her full retirement age (FRA). 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 $800. But, Joy's benefit rate is reduced for age to $737 because she's claiming her benefits somewhat early. Several years later Joy's spouse applies for his benefits, and his PIA is $2000. 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 $200 (i.e. $2000/2 - $800). Since Joy is over FRA when she becomes eligible for her excess spousal benefit, her excess spousal benefit is not reduced for age. However, the reduction for age applied to Joy's own benefit rate would continue, resulting in a combined benefit amount of $937 (i.e. $737 + $200).

Regardless of when your wife starts drawing her benefits, though, if you wait until age 70 to start drawing your benefits and subsequently die, your wife would be eligible for your full higher benefit rate (including delayed retirement credits) as a widow. She wouldn't get that full amount plus her own benefit, however, just the higher of your two benefit rates.

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