A lot of people recommend the opensocialsecurity tool on this board, so I thought I would ask if you're seeing the same behavior as I am.
Either I'm "doing it wrong" (again) or there seems to be a bug in the opensocialsecurity.com tool regarding the spousal benefit calculation.
First off, my understanding is:
* DW will draw "either her own earned benefit OR the spousal benefit, whichever is greater".
* Once DW starts her benefits, her %'s are fixed. My PIA might go up due to COLAs, but her % of my PIA will remain the same.
* DW spousal benefits are a % of my PIA and not my reduced benefit if I start before my FRA (or increased if I start after FRA).
Her own benefit is $563/mo
35.63% * my PIA=1120
MAX(563,1120)=1120
Therefore DW's monthly benefit (once I start mine) will be = $1120
This is extremely close to the benefit estimate received from SSA 12/29/21 (she started several months later so the numbers are slightly different).
The spousal benefit amount in opensocialsecurity is changing quite a bit based on when I start my SS benefit in the "Test an alternative strategy" section of the tool.
If I start my benefit at age 62, opensocialsecurity is showing DW=(6790 base + 7793 spousal)/12=1215 per month
If I wait to start my benefit at 65, opensocialsecurity is showing a significantly different spousal benefit of $10020/yr plus her own benefit of $6790/yr. (6790+10020)/12=1400.83 per month.
If I wait to start my benefit at 70, opensocialsecurity shows the same for spouse: (6790+10020)/12=1400.83 per month.
I emailed with the opensocialsecurity.com owner about it and was told (politely) "you're wrong, buy my book".
What am I missing that would cause the spousal benefit to increase based on when I start my benefit? (and top out at my age 65 vs my FRA at 67?)
Either I'm "doing it wrong" (again) or there seems to be a bug in the opensocialsecurity.com tool regarding the spousal benefit calculation.
First off, my understanding is:
* DW will draw "either her own earned benefit OR the spousal benefit, whichever is greater".
* Once DW starts her benefits, her %'s are fixed. My PIA might go up due to COLAs, but her % of my PIA will remain the same.
* Since DW started benefits at 63, her spousal benefit will be 35.63% of my PIA per https://www.ssa.gov/OACT/quickcalc/spouse.html and not 50% if she had waited until her FRA.
"You choose to receive benefits 45 months before normal retirement age. Your benefit will be 35.63 percent of the worker's primary insurance amount."
* DW spousal benefits can not start until I start drawing my benefit."You choose to receive benefits 45 months before normal retirement age. Your benefit will be 35.63 percent of the worker's primary insurance amount."
* DW spousal benefits are a % of my PIA and not my reduced benefit if I start before my FRA (or increased if I start after FRA).
Her own benefit is $563/mo
35.63% * my PIA=1120
MAX(563,1120)=1120
Therefore DW's monthly benefit (once I start mine) will be = $1120
This is extremely close to the benefit estimate received from SSA 12/29/21 (she started several months later so the numbers are slightly different).
The spousal benefit amount in opensocialsecurity is changing quite a bit based on when I start my SS benefit in the "Test an alternative strategy" section of the tool.
If I start my benefit at age 62, opensocialsecurity is showing DW=(6790 base + 7793 spousal)/12=1215 per month
If I wait to start my benefit at 65, opensocialsecurity is showing a significantly different spousal benefit of $10020/yr plus her own benefit of $6790/yr. (6790+10020)/12=1400.83 per month.
If I wait to start my benefit at 70, opensocialsecurity shows the same for spouse: (6790+10020)/12=1400.83 per month.
I emailed with the opensocialsecurity.com owner about it and was told (politely) "you're wrong, buy my book".
What am I missing that would cause the spousal benefit to increase based on when I start my benefit? (and top out at my age 65 vs my FRA at 67?)