Ask Larry

My wife is 63. I am 60. If she starts collecting social security now, will her spousal benefits be reduced if I wait until I am 67 (full-retirement benefits) to start drawing social security? Or will her spousal benefit automatically increase to 50% of my full benefit?

Hi. If your wife starts drawing her benefits prior to full retirement age (FRA), she'll retain the resulting reduction for age even if she later becomes eligible for a spousal benefit.

For example, say Mary files for her Social Security retirement benefits at age 63. Mary's PIA is $800, but Mary's benefit rate is reduced for age to $613. Several years later Mary's husband applies for his benefits, and his PIA is $2000. Mary's unreduced excess spousal benefit would then be calculated by subtracting her PIA from 50% of her husband's PIA, which in Mary's case amounts to $200 (i.e. $2000/2 - $800). If Mary is at least full retirement age (FRA) when she becomes eligible for the spousal benefit, she would then be paid the unreduced excess spousal amount of $200 in addition to her own reduced rate of $613 to give her a combined rate of $813.

You and your wife should strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry