Hey Larry,
My wife and I were in the very fortunate position to retire early last year. Both of us have earned enough credits to qualify for social security benefits. If my wife begins receiving hers at age 62 later in 2021, would she be eligible to file for and collect the difference between her lifetime monthly benefit and 50% of the benefit I will receive at age 62 in 2022? My benefit payment at age 62 is approximately 3-times the amount my wife would receive.
Thanks,
CD
Hi CD. Not exactly. Whenever your wife files for her benefits she'll be deemed to be filing for both her own Social Security retirement benefits and for spousal benefits. She wouldn't be able to actually collect spousal benefits until you start drawing your benefits, though. If you file for your benefits after your wife files for her benefits she couldn't switch from her own benefits to a spousal benefit, but she could file for an excess spousal benefit.
For example, say Amy files for her benefits this year at age 62. Amy's primary insurance amount (PIA), or full retirement age rate, would be $800. However, Amy's receives a reduced rate of $570 because she's starting at age 62. Two years later when Amy is 64, her husband applies for his benefits. Amy's husband's PIA is $2400, and Amy's unreduced excess spousal rate is calculated by subtracting her PIA from 50% of her husband's PIA. In Amy's case, that amounts to $400 (i.e. $2400/2 - $800). However, since Amy is only 64 when she becomes eligible for spousal benefits her spousal rate is reduced to $305. That amount is then paid in addition to Amy's own reduced rate of $570 to give her a combined rate of $875 (i.e. $570 + $305).
One thing you need to be aware is that if you die before your wife her maximum survivor rate would be equal to the higher of your benefit rate, or 82.5% of your PIA. So, if you file for your benefits at age 62 you will not only be reducing your monthly benefit rate but also the survivor rate that your wife could potentially receive. You and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.
Best, Jerry
