By Russell Gloor, National Social Security Advisor at the AMAC Foundation, the non-profit arm of the Association of Mature American Citizens
Dear Rusty: I will be turning 70 (yikes) this coming November. I will begin taking my Social Security benefit at that time. My age 70 SS benefit will be approximately $4,500 per month. My spouse (who is currently 74) began receiving her SS benefits about 10 years ago – before her FRA. She receives approximately $1,900 per month.
My question is, based on my expected SS monthly benefit of approximately $4,500, would my spouse be eligible for an increase in her monthly SS benefit? I’ve read some articles about this topic, but none of them seem to be on point – so I thought I’d reach out to you. Signed: Seeking Answers
Dear Seeking: Congratulations on choosing a claiming strategy which will maximize your Social Security. Waiting until age 70 to claim guarantees you will get the most you can personally receive for the rest of your life, along with annual Cost of Living Adjustments (COLA). But the spouse benefits available to your wife when you claim are not based on your age 70 amount. Rather, spouse benefits are calculated using full retirement age (FRA) amounts. Here’s what that means:
If your age 70 benefit will be about $4,500 then your FRA amount was likely around $3,450. If your wife claimed at, say, 64, then her FRA entitlement would probably have been around $2,200. Your wife will only get a spousal boost if 50% of your FRA amount (not your age 70 amount) is more than her own FRA entitlement. From what you’ve shared, 50% of your FRA amount would be about $1,750, which is less than your wife’s FRA entitlement (and her current age 64 amount), which means that she would not be eligible for a spousal boost to her own amount from you.
Spouse benefits can be tricky, because they’re based on FRA entitlements, regardless of the age at which benefits are actually claimed. That is not so, however, for surviving spouse benefits. If you were to predecease your wife, her benefit would be your entire $4,500 amount, instead of her own smaller current amount. Surviving spouse benefits are based on the amount each of you are currently receiving, not on your amounts at your full retirement age.
I hope this answers your question, but we’re always here if you need any further assistance.
This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org.
