Ask Larry

My wife born 3/21/50 claimed her social security at age 67. As for me, born 2/29/52 I am delaying mine until age 70, I have claimed spousal benefits, drawing 1/2 of my wife's social security. When I claim my social security at age 70, can my wife switch to the spousal benefits on my account? What does that mean? What is the advantage?

Hi,

Your wife couldn't actually switch from drawing her own benefits to drawing spousal benefits, but she could apply for additional spousal benefits when you file for your benefits. However, your wife will only be eligible for additional spousal benefits if 50% of your primary insurance amount (PIA) is higher than her PIA augmented by delayed retirement credits (DRC). A person's PIA, by the way, is equal to their Social Security retirement benefit rate if they start drawing at their full retirement age (FRA).

For example, say Barb files for her Social Security benefits at age 67. Barb's FRA is 66 and her PIA is $800, and by waiting until age 67 to apply Barb receives an 8% increase in her benefit rate due to DRCs. That results in a monthly benefit rate of $864 in Barb's case (i.e. $800 x 1.08). Barb's husband later files for his Social Security benefits when he turns age 70, or 4 years after his FRA of 66. Barb's husband's PIA is $2000, but DRCs raise his benefit rate by 32% to $2640. However, Barb's spousal benefit is calculated by subtracting her age 67 rate from 50% of her husband's PIA, which would be $136 in her case (i.e. $2000/2 - $864). That amount is then added to Barb's own benefit amount to give her a combined rate of $1000 (i.e. $864 + $136).

Best, Jerry