Spousal Social Security

[RetMD21]

My original plan was to have my wife (lower earner) file for SS early and then in a few years get half of my benefit when I claim (say at FRA,Full retirement age, of 66 years and 4 months) Apparently that isn't how it works. My understanding from AARP is that if she files early she permanently gets less. Is that right?

The top spousal benefit is 50 percent of your husband's or wife's primary insurance amount (the retirement benefit he or she is entitled to at full retirement age, which is currently 66 and is gradually rising to 67 over the next several years). You can get that maximum if you first claim benefits at your own full retirement age; the amount is reduced if you file earlier.

https://www.aarp.org/retirement/social-security/questions-answers/switch-social-security-spousal/

Sorry in advance as I am sure this has been discussed before

 

[kaneohe]

Yes, that's my impression. For spousal benefit, spouse gets your PIA times spouse age factor F2.

You get your PIA times your own age factor F1. When you pass, your spouse gets your benefit times spouse age factor so
PIA x F1 x F2 so if both of you take early , survivor gets both deratings

 

[VanWinkle]

If are getting your own benefit, your spouse is not able to apply for her benefit alone. She will automatically be applying for spousal and her benefit. If you are not getting your benefit, her benefit will be based on her age when you apply for your benefits. She will get a percentage of your FRA amount, based on her age when you apply for your benefit. She will never get more on her own benefit if she applies before FRA, but she can get up to 50% of your benefit if she is full retirement age when you apply for benefits. This will be made up of here own benefit plus a top off to the max available from spousal benefit.

This is the way I read the information on the SS website, but I would call and confirm this with the SS office.

 

[pb4uski]

My original plan was to have my wife (lower earner) file for SS early and then in a few years get half of my benefit when I claim (say at FRA,Full retirement age, of 66 years and 4 months) Apparently that isn't how it works. My understanding from AARP is that if she files early she permanently gets less. Is that right?


https://www.aarp.org/retirement/social-security/questions-answers/switch-social-security-spousal/

Sorry in advance as I am sure this has been discussed before

Going from memory but I think it works like this. Let's say that her PIA is $900 and yours is $2,500 and you are older than her.

If she files at her FRA she gets $900. Once you file she get her $900 plus a spousal benefit for the excess of 1/2 of your PIA over her PIA... which is ($2,500*1/2)-$900... or $350 spousal benefit, so her total benefit is then $1,250 (1/2 of your PIA).

However, if she files early... before her FRA and gets $800 rather than $900 because she filed before her FRA... when you file at your FRA she then gets the $350 spousal benefit, but her total benefit is only $1,150 ($800 + $350). In other words, her benefit is permanently reduced by $100 for taking early just like it would be if she were single.

Then if you pass... on top of what she was collecting at the time she gets a survivor benefit equal to the excess of your benefit over her benefit... in the first case $1,250 and in the second case $1,350... so she ends up with $2,500 in total (assuming that you started collecting at your FRA).