SS at age 62 for both - question

[bizlady]

I am trying to help my divorced sister project retirement income.

Her ex is 3 years older than she is. If he chooses to start SS at age 62, and she also chooses to start when she gets to age 62, does she get 50% of what he gets? (we already know that half of his will be higher than what she would get on her own earnings)

Thanks

 

[W2R]

I am divorced, and this webpage has been helpful to me.

Retirement Planner: If You Are Divorced

It's a starting point, anyway!

 

[kaneohe]

should be close, I would think. His SS is reduced by a factor because he is taking early and hers is reduced by a factor since she is taking early. Since they both start at age 62,
the factors should be similar since they are only 3 yrs apart. You can find the factors that depend on birth date here: Retirement Age Calculator

 

[bizlady]

Both these helped. Essentially, hers is calculated against his FRA benefit, but if she takes it at 62, she only gets about 1/3.
Great calculator link above from Kaneohe. Good info from W2R as well. Put together, I got my answer, so thanks to both!

 

[F4mandolin]

I kind of asked this question at the SS office last year. My wife's 50% spousal coverage is only 50% of what I will get if she waits until her full retirement age....which I believe will be 67. If she takes it at 62 they will reduce a certain amount for the time taken off.

 

[kaneohe]

Essentially, hers is calculated against his FRA benefit, but if she takes it at 62, she only gets about 1/3.

so about 1/3 vs his PIA (his @ FRA) but about 1/2 of his actual, right?

 

[Coffee Mavin]

If she has the option she should take her benefit at 62 and then switch to his when she is at FRA. Until he retires she can't claim anything but her own record anyhow, so it would be best to do planning based on her own earnings record.

 

[DatumPoint5]

Until he retires she can't claim anything but her own record anyhow,

I think she may be able to apply for spousal benefits whether her "Ex" started retirement benefits or not. According to the link supplied by W2R the rule seems to imply she can claim if she was divorced "at least two years"...

e.g. Retirement Planner: If You Are Divorced "If your ex-spouse has not applied for retirement benefits, but can qualify for them, you can receive benefits on his or her record if you have been divorced for at least two years. "