I am >FRA and I am currently receiving 50% of the spouse's PIA. I understand that my spouse's benefits will be reduced (by $1 for each $2 in excess earnings) If she (2 years from FRA) earns more than $17K in 2018. Would my spousal benefit be reduced when her benefit is cut or reduced because of her excess earnings?

Hi,

Yes, both your and your wife's benefits would be subject to withholding in order to recover any amount required under Social Security's earnings test (https://www.ssa.gov/planners/retire/whileworking2.html).

For example, say Jane files for retirement benefits this year at age 64 and her husband Bob files for spousal benefits on Jane's record. Jane's reduced retirement rate is $700 and Bob's spousal benefit is $400. Jane will earn $21,320 this year, or $4400 more than the earnings test exempt amount of $16,920. As a result, $2200 would need to be withheld from the benefits payable on Jane's record. So, in this example, both Jane and Bob's benefits would be withheld for 2 months in order to recover the required amount of $2200.

Best, Jerry