Dear Liz: Next year, I’ll be turning 64 and my wife will be 62. I’m considering delaying my Social Security application until age 70 if I can. At my full retirement age of 67, I expect benefits of around $3,400, while my wife’s would be about $1,100.
Even if she waits until 70 to apply, my benefits will always be more than half of hers.
Can she start claiming early benefits next year, which would be around $800 per month, and then switch to her spousal benefit when I apply? Also, does the “deeming” rule come into play here? If I go for early benefits, will she get my half?
Answer: Once you’ve started receiving benefits, your wife will effectively be applying for both her own benefits and spousal benefits, receiving whichever is higher. You can’t just opt for one or switch later on.
However, she won’t be able to access spousal benefits until you apply. Currently, she can only claim her own. When you do apply, spousal benefits will become available, and if that amount is greater, she can switch to it.
Spousal benefits can go up to half of what the primary earner gets at retirement age, but this amount decreases if you start earlier. So, if she applies before her retirement age, her spousal benefit would be less than 50% of what you receive.
Additionally, benefits starting before full retirement age are usually subject to a means test.
Given the various factors to consider, it might be wise to consult a paid Social Security claims strategy site, like Social Security Solutions or Maximize My Social Security.
