Conflicting advice

[MichaelS405846]

I am the higher earner and also older spouse. I am older by 4 years. Our plan was to wait until I turn 70 to receive the maximum benefit. A year after that my spouse would reach her FRA of 67 and her benefit. She would collect 1/2 of my benefit with a GPO deduction. This is higher than her own benefit. All fairly staright forward.

Someone mentioned to me that she could start collecting now (she's 63) her reduced benefit and then switch to my higher spousal benefit when she reached her FRA at 67. Sounded like something we should look into. I called my local social security office and was told that was phased out a few years back. She would be stuck at the benefit when she first filed at 63.

Can anyone provide any insight.

Mike

[GailL1 · Accepted solution]

This all depends on the age that each of you are now or at the age when you both want to get benefits.  It is a matter of a couple coming to an agreement as to what is best for them as a couple because it is a rather unique situation that depends on the age of both of you.

Since you are the older and if you have already reached your FRA and are just waiting for that ole 70 figure to hit before you file - if she has reached that early filing age of 62 and wants to file for her own benefit, then the "deemed" filing rule is still in effect even if you haven't filed for benefits yet since you are waiting for 70.

What this means for her is when she files, they will look at any benefit to which she is eligible - and at that time it would be her own benefit and her spousal benefit even though you aren't drawing yet but you do meet the (age) criteria for a full benefit at FRA just not with the delayed retirement credits.

So how old will you be when she turns 62? 

If you, as her spouse, will be less than FRA she can file for and get her own (reduced) benefit and then when you turn FRA and file for retirement benefits, she can switch to spousal benefits but they will also be reduced due to her early filing.

But if you are already at FRA, albeit not drawing benefits, when she files for her reduced benefits at 62, you both will have to choose what to do because she is gonna be deemed filing for both her eligible benefits.

All this is trying to do is prevent the (what is labeled) as double dipping -  So, you, as the primary beneficiary for spousal benefits cannot be older than your FRA for her to be able to file for early benefits without the deemed filing rule to apply.

[MichaelS405846]

Thank you so much. You hit the nail on the head. I am past my FRA and she has yet to reach hers. Now I understand that when she reaches hers she'll hit the "deemed filing" status. It probably makes sense for her to just wait until her FRA and she should get half my benefit minus the GPO. 

Thanks again