@D56auction wrote:
GailL1 (VSB)
Thanks so much for that comprehensive response. I have pretty much figured out everything except the following -
- "between age 62 and your full retirement age, the amount will be permanently reduced by a percentage based on the number of months up to your full retirement age."
What is the "reduced by a percentage"? I know it's based on number of months up to FRA (in her case 48 months) but what is the percentage? Four calls and multiple hours on line with SSA and no one seems to know what the actual calculation is. I know her maximum spousal benefit is 50% and I think perhaps her minimum is 35% but I can't seem to get the last step to the actual calculation.
Thanks again for your time.
Sorry I missed your reply post until I saw it today -
This chart from SSA should answer your question -
SSA Benefit Planner - Retirement - Chart by year of birth with FRA and Early Benefit reduction
Notice it also gives an example of the Spousal Benefit too.
from the link:
The chart below lists age 62 reduction amounts and includes examples based on an estimated monthly benefit of $1000 at full retirement age. Select your year of birth to find out how much your benefit will be reduced if you retire between age 62 and full retirement age.
. . . . The maximum benefit for the spouse is 50 percent of the benefit the worker would receive at full retirement age. The percent reduction for the spouse should be applied after the automatic 50 percent reduction. Percentages are approximate due to rounding.
- Figure your FRA benefit - do NOT include your delayed retirement credit (from your FRA to 70 years old).
- Figure 50% of your FRA benefit - that is a FULL Spousal Benefit
- then reduce the Full Spousal Benefit by the applicable % shown on the chart. This should also be the same reduction benefit % (approximately) which she received on her own benefit when she started drawing it at age 62.
It's Always Something . . . . Roseanna Roseannadanna