Q: I chose to start collecting Social Security benefits when I reached age 62. I'm now 66, which is my full retirement age (FRA). My wife will reach her full retirement age in two years. At that time, she'd like to file for her spousal benefits based on my work record, and delay receiving her own benefit until she is 70.
Here's my question: Will the spousal benefit she receives at that time be based on the benefit I would have received if I had filed for it at 66, or will she get a spousal benefit based on the reduced amount that I got because I elected to take benefits at age 62?For example, if my benefit at at FRA would have been $2,000 a month, but I actually received only $1,500 a month because I started taking it early, when my wife reaches her FRA, will her spousal benefit be 50% of the $2,000 or 50% of the $1,500? -- FS via email
A: She'll get a spousal benefit based on the amount you would have received at 66. In your example, that would be $1,000 a month, or 50% of the $2,000 you were entitled to at your full retirement age.
The reason: When you apply for a Social Security benefit, it's always your own age that determines whether or not the benefit amount is reduced. The fact that you filed for your retirement benefit early won't affect the size of your wife's spousal benefit as long as she waits until her full retirement age to apply for it.
As I've written before, many people are unaware that once you reach full retirement age, you're allowed to apply for spousal benefits only, delaying your own benefit so that it can keep growing. Unfortunately, some of those people work at the Social Security Administration; so it sometimes takes a little patience and perseverance to follow this strategy.
If you plan to do this, it's a good idea to make an appointment at a Social Security Administration field office for a face to face meeting with an agency representative, rather than to file for benefits online or on the telephone, and take a copy of the relevant rules with you. You'll find links to those rules in my AARP Bulletin article about this.
Please send your
questions to Lynn@LynnBrennersFamilyFinance.com. I'm sorry I can't respond personally to every
email. Questions are only addressed online.
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