Spousal Benefits SS Understanding

[MissMolly]

Sorry that I am so daft at understanding all this. I am currently trying to figure out what this looks like for myself and the wife.

My benefit is larger than the wifes.

We are currently 56 (me) and 55 (wife) .

My PIA (at 67) $3870 ..if i elect at 62 ($2675)
Wifes PIA (at 67) $1139

I think the disparity is large enough that wife will default to spousal benefit?

Is she allowed to take that before I begin my social security ? (for instance, she begins at 62 and I wait till 67?)

thank you,

pwf

No, she cannot claim spousal until you file. But yes, when the time comes for you and then her to file, SS will automatically award her the spousal amount if it’s the larger amount, but that will be dependent upon her age when she files. If she files before she is full retirement age she will not be entitled to the full 50% of your PIA. And it’s possible that the reduction would be at an amount that would make her own benefit higher.

 

[Alan]

Not with spousal benefits. You need to have filed before she can file to have spousal benefits. But she can certainly file against her own first, and then switch to spousal benefit when you file. But note that by filing early, her benefits is permanently reduced, including spousal benefits.

My wife applied for her benefits a few months before her FRA, and I waited until age 70 to maximize her survivor benefits. She is 9 months younger than me.

I started receiving my SS this year and my wife received a letter from SSA telling her that she needs to file for spousal - her benefits are less than mine at my FRA (PIA amount). She has a phone appointment booked for Sep 11 and from what I can see she should get a bump up of about $50 - $100 per month.

 

[Texas Proud]

Not with spousal benefits. You need to have filed before she can file to have spousal benefits. But she can certainly file against her own first, and then switch to spousal benefit when you file. But note that by filing early, her benefits is permanently reduced, including spousal benefits.

What about survivor benefits? I do not think those are reduced.... but do not know enough to be sure...

 

[RetiredHappy]

What about survivor benefits? I do not think those are reduced.... but do not know enough to be sure...

Survivor benefits are not reduced as long as the survivor files for survivor benefits after reaching FRA. The survivor will then receive whatever the deceased was drawing on, replacing survivors own / spousal benefits that the survivor might have been drawing on then.

 

[DJRR]

Thank you, does that mean she would then receive spousal benefts at the 37.5% rather than 50%. Would she receive $1449 (in total) at that time. That was my original understanding.

I ask as the web and AI answers say something different, which I do not understand.

I don't believe this is correct. Your wife claimed early and then switched to spousal benefits she would get 50% of your FRA minus her FRA amount plus the amount she is currently receiving. She gets a discount, but it is not 37.5% of the spousal amount available to her.

Spent a few months getting this right, so I think that is the formula, but I am sure someone will correct if wrong.

 

[Koolau]

Not with spousal benefits. You need to have filed before she can file to have spousal benefits. But she can certainly file against her own first, and then switch to spousal benefit when you file. But note that by filing early, her benefits is permanently reduced, including spousal benefits.

Yes. DW started at 62. When I began at age 70, she did not get a bump because she was still getting a reduced benefit even on my 1/2 benefit.

 

[Out-to-Lunch]

Sorry that I am so daft at understanding all this. I am currently trying to figure out what this looks like for myself and the wife.

My benefit is larger than the wifes.

We are currently 56 (me) and 55 (wife) .

My PIA (at 67) $3870 ..if i elect at 62 ($2675)
Wifes PIA (at 67) $1139

I think the disparity is large enough that wife will default to spousal benefit?

Is she allowed to take that before I begin my social security ? (for instance, she begins at 62 and I wait till 67?)

thank you,

pwf

FWIW, this is what Open Social Security has to say:

Recommended Strategy​

The strategy that maximizes the total dollars you can be expected to receive over your lifetimes is as follows:

• Your spouse files for his/her retirement benefit to begin 5/2031, at age 62 and 1 months.
• You file for your retirement benefit to begin 4/2038, at age 70 and 0 months.
• Your spouse files for his/her spousal benefit to begin 4/2038, at age 69 and 0 months.

The present value of this proposed solution would be $742,041.

Basically, she files as early as possible, you wait to 70, and she starts her spousal benefit when you file.

 

[MissMolly]

I don't believe this is correct. Your wife claimed early and then switched to spousal benefits she would get 50% of your FRA minus her FRA amount plus the amount she is currently receiving. She gets a discount, but it is not 37.5% of the spousal amount available to her.

Spent a few months getting this right, so I think that is the formula, but I am sure someone will correct if wrong.

Read the Early Retirement Reduces Benefits section: Benefits For Spouse

 

[DJRR]

Read the Early Retirement Reduces Benefits section: Benefits For Spouse

Right. Should have said my wife took her own benefit early, but will not take spousal early. That was my confusion. I thought that any claiming early would result in the corresponding reduction to a future spousal claim. She gets a reduction on her benefit permanently, but not on her spousal so the blend is less than a 37.5% reduction.

 

[RetiredHappy]

Right. Should have said my wife took her own benefit early, but will not take spousal early. That was my confusion. I thought that any claiming early would result in the corresponding reduction to a future spousal claim. She gets a reduction on her benefit permanently, but not on her spousal so the blend is less than a 37.5% reduction.

I believe that spousal benefits are also reduced accordingly because once she filed early, she is also deemed to have filed for spousal benefits even though she could not claim spousal benefits before you claimed yours.

 

[Spock]

Last time I floated the question this was the distilled answer:
"spouse reduced + excess of ½ of your PIA over spouse PIA)”

 

[DJRR]

Last time I floated the question this was the distilled answer:
"spouse reduced + excess of ½ of your PIA over spouse PIA)”

That is where I ended up too.