Question: I am 62. I have not worked for twenty years but do have my required quarters. I would like to take early retirement now. My husband is the same age, however, he does not plan on retiring until his full retirement age (FRA) of 66 or even later. If I begin drawing now, can I opt for 50% of my husband's when he retires if it is higher than my early retirement amount?
Answer: Yes, you can apply for your own retirement now and apply for a wife's benefit when your husband reaches age 66 as long as he files an application with Social Security at that time. It is very possible that your spousal benefit will be higher than your own retirement, but your combined benefit rate will be less than 50% of your husband's unreduced benefit.
Why? Your own retirement will be reduced up to 25% if you take benefits early and the % of this reduction will remain even if you wait until your FRA to apply for the wife's benefit.
The only way to get the full 50% as a wife is to wait until your FRA to apply for both benefits. Even if your husband continues working, he can start to receive his benefits at his FRA or he can choose to suspend his benefits and wait until age 70 to claim his maximum retirement rate.
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Am I understanding these posts correctly? If my wife is 62 and I am 64, (if I do not apply for SS) my wife can start getting her own social security, say $900. At 66 (FRA) I apply and get, say, $2000; my wife then starts getting the max spouse benefit, instead of her benefit, dropping her check from $900 to $750. Is that correct? Another option is if I wait until 70, could I get the spousal benefit when she turns 66 (fra). Which I guess is $750. She, then, gets the spouse benefit when I finally start collecting SS at 70? Thanks for your help.
ReplyDeleteThis is a little complicated, actually it is really complicated because of the way spousal benefits are computed.
ReplyDeleteBased on the benefit rates you provided, the strategy you outlined will not work in your case. Here is why:
If your wife's own retirement benefit at 62 would be $900, she would not receive an increase as your spouse when you apply (assuming your FRA benefit rate will be $2000. Once she applies for her own retirementshe will not have the option to switch to a lower spousal benefit.
Option 1: She could wait until she is 66 and apply for wife's benefits on your record, then switch to her own at 70 (if higher).
Option 2: She could apply anytime after 62 on her own work record so that you could apply for husband's benefits at 66, then switch to your own at 70.
Deciding which option will maximize your benefits as a couple depends on your relative ages and benefit rates. Contact me by email at info@stepupsocialsecurity.com for a Personalized Benefit Analysis to help you compare your options and decide which will maximize your lifetime benefits as a couple.