AARP had an article last month about "spousal" benefits that I absolutely didn't understand, even with my masters degree in accounting. It was very confusing. Also, last week, my sister suggested to my wife that she could be drawing some of my social security.
Here's our information: We're both 62. She's retired, I'm still working. She worked mostly part time her entire career and doesn't have a lot of SS, so we decided to go ahead and take hers when she turned 62. Her benefit is $462 a month. I've always made considerably more money than my wife. My latest SS estimate said that at age 62 would be $1680/month, and at age 66 would be $2271 a month. I plan on working until I'm 65, and will probably start taking my benefits then.
So, what is this spousal benefit about? Can my wife get more money than $462? Will my benefits be reduced at age 65 if she does? Can you explain to me what spousal benefits are?
Thanks,
Carl
All Expert, Christian Teens.
Answer Your wife will be eligible for an additional benefit as your wife after you file for benefits. Here is an example of the calculation...
A spousal benefit begins at 50% of your unreduced benefit amount.
$2271/2 = $1135
Assuming your wife took her retirement benefit at age 62 and she receives about 75% of her full benefit amount, so I am estimating her full benefit amount was about $616.
$1135 - $616 = $519 This would be the amount of her spousal benefit at her full retirement age (66). If she takes the spousal benefit at age 65 when you retire, the $519 will be reduced for age. The formula for a 12 month reduction is:
$519 x 132 / 144 = $475 So at age 65, your wife would receive $475 spousal benefit in addition to her retirement benefit of $462.
