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.
QUESTION: If my wife gets that extra amount, is my benefit reduced?
Assuming I retire at 65 and take SS, what would be my benefit if my wife died at 66?
Same assumption, what would my wife get if I died at 666?
Thanks so much
Answer No a spouse's benefit does not affect the your retirement benefit. It is paid in addition.
If your wife dies, you would receive only the Lumpsum Death Payment of $255. You would not be eligible for a widower's benefit if you have already taken your own retirement since your own retirement is higher than your wife's retirement benefit. However, if you have not yet retired you have the option of taking the lower widower's benefit and letting your own retirement benefit build delayed retirement credits which then pays a higher benefit amount.
If you die, your wife can get a widow's benefit since her retirement benefit is lower than your retirement benefit. If she is full retirement age when you die, she will get the amount you were collecting if you retired at age 65. She continues to get her retirement less the spouse benefit and then SS will add to it a new amount from your record as a widow so her total benefit will be the amount of your check at your death. When you take a reduced retirement benefit that prevents your widow from ever collecting 100% of your full age benefit amount as your widow.
Hope this is clear. If you would like to talk with me on the telephone, please provide a number and the best time to reach you.
