Whether or Not to Take Spousal Benefit

[RobertC867858]

Regarding spousal benefits, can you tell me if the following is a correct understanding of the policy?

Given that:

* I retired at full retirement age a couple of years ago.
* My wife will be retiring at full retirement age in a few months.

Is it the case that it would only benefit her to claim the spousal benefit if her upcoming SSA payments were expected to be less than 50% of my current ones?

Or is it not that simple?

Thanks!

[GailL1]

@RobertC867858 asked:  

Is it the case that it would only benefit her to claim the spousal benefit if her upcoming SSA payments were expected to be less than 50% of my current ones?

Or is it not that simple?

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Actually it is pretty simple now - she really doesn't have a choice - she will get the higher benefit - whichever that may be.

Since the passage of the The Bipartisan Budget Act of 2015, when a person files for retirement benefits, they are "deemed" to be filing for any benefit to which they qualify.  

In your wife's case she would be filing for her own work benefits and also her Spousal benefits since you are already receiving your retirement benefits (which is a prerequisite for the spousal benefit ).

At the time of her filing, SSA will determine which of her benefits would be the higher amount and that is the amount she would get.  It may be a blend of the two benefits on paper but the amount which she gets would be the higher amount of the (2) benefits for which she qualifies - her own work record benefit or her spousal benefit.

Since she will be FRA at filing, there will be no reduction for early filing.

SSA.gov Benefit Planner - FAQ Filing Rules for Retirement and Spouses Benefits