Ask Larry

Larry I am 63 and my wife is 61 so we were big losers with the recent changes to the SS rules. We also have a disabled adult daughter living with us receiving SSI. My wife has stayed home as the primary caregiver so her FRA benefit is ~$800 while my FRA benefit is ~$2,400. I understand that my wife is entitled to a spousal benefit of 1/2 my benefit and that my daughter is also entitled to 1/2 of my benefit when I file at FRA. Is my wife, as full time caregiver to our daughter eligible for a full spousal benefit at my FRA or will it be reduced as she will be 64 when I reach FRA. Also are we exempted from the family maximum provision due to our daughters disability- I read somewhere there was a clause that provides such an exemption but the person I spoke to at the SS was not able to confirm or deny that. Thanks for all you do to help us through s bewildering set of rules.

Jeff,
Your wife would be eligible for an unreduced child-in-care spouse's benefit at your FRA equal to 50% of your FRA retirement benefit. Your daughter would also be eligible for a Disabled Child's Benefit equal to 50% of your benefit. However, there is no exemption to the family maximum due to your daughter's disability. So, both benefits will be reduced, probably to 37.5% of your FRA retirement benefit since the family maximum generally means that 75% is available for them.

Best,
Mike