Social Security Spousal Benefit Question…
Hello,
My wife is 63 years old and could claim a minimal SS benefit. In 3 years, when I claim my benefit, I understand she will be eligible for 50% of my benefit, as that would be much higher than hers.
We are advised that she should claim her small benefit immediately, and so collect it for 3 years, then when I claim my benefit, her benefit would increase to 50% of mine. Can anyone here confirm this is true…?
If it is, what action would she/we have to take in three years to make that increase in her benefit happen…?
My apologies for the off-track question. I thought the experience on this board might overlap into the SS area…
Thanks,
Gerry.
Permalink Submitted by kathleen Lane on Thu, 2007-10-11 20:07
here is how I understand the SSA benefit works.
1. you and your wife can both claim benefits based upon your prior work history.
2. if your wife claims at the age of 62, her benefits will be less than if she waited until she was 65.
3. the retirement amount SSA calculates when she applies is what she receives until you or she dies. Her retirement check is not impacted by the benefit SSA calculates is due you.
4. When you apply, SSA calculates your retirement and starts paying it. Your wife’s check is not impacted.
5. the benefit calculated for your wife…and the amount calculated for you…continue until one of you dies. at that point, the two checks will become one check. SSA will calculate which retirement check has the highest benefit..and will start paying the surviving spouse the one check.
6. If you die first and your retirement check is greater than your wife, her check disappears…and she continues to receive 100% of your SSA retirement. Conversely, if your wife dies first, you as the surviving spouse will continue to receive one check: whichever check was the highest.
Permalink Submitted by [email protected] on Thu, 2007-10-11 21:33
kathy, thank you for the response.
re your statement: “3. the retirement amount SSA calculates when she applies is what she receives until you or she dies. Her retirement check is not impacted by the benefit SSA calculates is due you.”
That is how I thought it worked, until I got the latest AARP bulletin. In there was an article advising when to start taking SS benefits. They recommended a wife with a low benefit “should start her individual benefit at 62. When her husband retires, she’ll switch to the spousal benefit.” There was no mention of anyone having to die to kick off the change…!
However, there was no information regarding what action might be necessary to make it happen, or if it was automatic.
I am hoping someone on this board might have accomplished this and can confirm it, as I have read some horror stories about difficulties in communicating with the SS Administration…!
Permalink Submitted by Alan Spross on Fri, 2007-10-12 05:03
I agree with AARP. The lower earning spouse can start benefits at 62 and when the spouse collects, the benefit will increase automatically to 50% of that of the higher earning spouse. See att’d
http://www.ssa.gov/OACT/quickcalc/spouse.html