Reader Q&A: Social Security spousal benefits
Posted on 01 September 2009
Permanent URL of this article: http://retirementrevised.com/money/reader-qa-social-security-spousal-benefits
Q: A recent AARP Magazine article discusses Social Security spousal benefits. I am 62 years old and my husband is 60. I thought I would delay receiving benefits until I was 65 in order to receive a higher amount for life, but this article advises otherwise. If I read it correctly I should collect on my benefits now which would be $732 and then at age 66 switch to spousal benefits of $899 which is half of what my husband will get at full retirement ($1798). It would take me until I was 65 to receive that amount through my Social Security and I would lose all the money I could collect now. Am I reading it correctly?? I haven’t read any other articles on this subject except this one and I am frankly confused. Thanks for your time. - Marie, via the Internet.
A: I referred your article to the Social Security Administration. Their response: “In this example, the husband’s retirement benefit at full retirement age is $1798, so 50 percent of that amount ($899) would be the maximum that spouse could receive from his record,” says a Social Security Administration spokesman. “From that amount, we subtract the amount of the wife’s retirement benefit at full retirement age. If she’s currently receiving a reduced retirement benefit of $732, that means that her monthly benefit at full retirement age (66) would have been $976. This amount is higher than 50 percent of her husband’s retirement benefit at full retirement age ($899) so there would be no spousal benefit due later at age 66.”
September 1st, 2009 at 4:03 pm
I read this same article. I am age 66 and I am still working
full time and I am receiving my social security check monthly.
My wife just turned age 62. She is also working full time, but she is not receiving social security. We applied for the
spousal benefit for her yesterday and they called us back this
morning and said she didn’t qualify for it because she was making over $14,160.
Is this correct? Please advise.
September 17th, 2009 at 9:03 am
Persons receiving social security benefits that have not yet reached full retirement age are subject to an earnings test. The maximum for 2009 is $14,160. Your wife would have to repay $1 of her benefits for each $2 dollars of wages over this amount. Thus if she makes $22,160 she would have to repay $4,000 computed as 1/2 of the excess of $22,160 over $14,160.
June 23rd, 2010 at 9:42 am
I am 66 and and my wife is 62. She earned less during her work years. She has just applied for her benefit ($750 per month) and I filed as her spouse. Because I am 66 I will receive 1/2 of what she would receive at age 66 (1/2 of $1000) and I can receive that as long as I wish until I decide to switch to my own account. This delay in applying for my benefit allows that benefit to grow 8% per year until my age 70. I suspect that I will switch to my own account at my age 68. In the meantime the $500 per month is gravy most couploes dont know about. SSA calls it “A vs B” for some reason. gmg