Social Security

[Burke]

H is 57. W is 62. Wife takes early retirement from SSA on her own record. (Minimal work history.) H won't be FRA for 9 years. By that time, W is 71. 1/2 of H's benefit will be way more than she is drawing now, but can she switch to his record after drawing on her own for 9 years?

[ATSMAN]

H is 57. W is 62. Wife takes early retirement from SSA on her own record. (Minimal work history.) H won't be FRA for 9 years. By that time, W is 71. 1/2 of H's benefit will be way more than she is drawing now, but can she switch to his record after drawing on her own for 9 years?

I would think so.

This is from ssa.gov

If your spouse is under full retirement age and qualifies on his or her own record, we will pay that amount first. But if he or she also qualifies for a higher amount as a spouse, they'll get a combination of benefits that equals that higher amount. If he or she begins receiving benefits:

between age 62 and their full retirement age, the amount will be permanently reduced by a percentage based on the number of months up to his or her full retirement age.

If your spouse is under full retirement age and

works while receiving benefits, his or her benefits may be affected by the retirement earnings test.

also qualifies on his or her own record, his or her application will include both benefits.

at his or her full retirement age, their benefit as a spouse can be equal to one-half of your full retirement amount.

[mactoolsix]

Keep in mind that at age 71 the wife's SS received will be a combination of a couple of things:

1.) Spousal benefit amount equals 1/2 the spouse's FRB (age 66).
2.) If receiving retirement benefits, this is then reduced by FRB (age 66) amount.
3.) This is then added to the retirement benefits to equal the total benefit.

If RB taken prior to FRA, this will permanently reduce the spousal benefits.

Your OP seems to indicate you feel she will receive 1/2 the husband's benefit which is not true.

Example:
Wife FRA benefit = 1,000
At age 62 RB= 750

Husband FRA benefit = 2,600

Wife takes age 62 RB =750
When hubby is FRA, wife switches to spousal benefit = 1,300 reduced by wife's FRA of 1,000 + 750 RB she is receiving = 1,050
Thus the $250 early RB reduction will stay with her.

The best Social Security website is MaximizeMySocialSecurity.com - Cost is $40 well worth it!!!

Mike

[Burke]

No, I tend to agree with your assessment. It is they who believe she will get 1/2 of his RB at her age 66. I think she can't get 1/2 of his until HIS age 66, because that is when he will apply for benefits. Then there is that "file and suspend" thing also. Thanks for the site.

[mactoolsix]

No, I tend to agree with your assessment. It is they who believe she will get 1/2 of his RB at her age 66. I think she can't get 1/2 of his until HIS age 66, because that is when he will apply for benefits. Then there is that "file and suspend" thing also. Thanks for the site.

If she begins taking SS prior to her FRA, she will never receive 1/2 of hubby's SS. It will always be reduced by her RB reduction.

Get this though:
If she began receiving her RB at age 62. She can suspend at say age 63 and pay back NOTHING. Her suspended benefit will then grow at about 7% for each year it is suspended. Then later she can resume her RB at the increased benefit rate. When she begins spousal support from hubby, the reduction won't be quite as much. EVERYTHING depends on age expediencies & inflation.

Here are two age expectancy sites I recommend:

http://media.nmfn.com/tnetwork/lifespan/#0

https://www.livingto100.com

The second is a bit tougher (I always ask clients to use both, and then give me the number they want to use.)

Mike

[Burke]

What happens if she waits until her age 66 to draw her benefit. Can she then switch to 1/2 of his when he reaches FRA? What if he files and suspends because he still wants to work?

[mactoolsix]

What happens if she waits until her age 66 to draw her benefit. Can she then switch to 1/2 of his when he reaches FRA? What if he files and suspends because he still wants to work?

Yes, now you're onto it.
If she waits till her FRA, she will receive the full spousal benefit = 1/2 his FRB.

There is no benefit to her waiting after he turns FRA.

He will have to file and suspend in order for her to collect the spousal benefit.
When he suspends, his RB will grow 8% each year until age 70.

Depending on their life expectancy, waiting longer could provide a big windfall.
However, if the life expectancy is less than 82-84, it usually doesn't pay.

With that large an age difference, I would insist they spend $40 on Maximize My SS.

(Sorry for the late answer, but I had to return to work today to begin the tax season.)

Mike