Social Security

[jlf58]

I could look it up but TUG is like it's own GOOGLE

I plan on working until I am 67. Can my wife take 1/2 my SS at 62 ?
If not, what are her options ?
The scanario would be I still work at 62 until 67 but she starts getting SS at 62 !!

TIA

 

[Conan]

How old are you now?
How old is your wife now?
Does your wife have a significant earnings record of her own?

 

[Passepartout]

From www.ssa.gov

Eligibility requirements and benefit information


"When a worker files for retirement benefits, the worker's spouse may be eligible for a benefit based on the worker's earnings. Another requirement is that the spouse must be at least age 62 or have a qualifying child in her/his care. By a qualifying child, we mean a child who is under age 16 or who receives Social Security disability benefits.

The spousal benefit can be as much as half of the worker's "primary insurance amount," depending on the spouse's age at retirement. If the spouse begins receiving benefits before "normal (or full) retirement age," the spouse will receive a reduced benefit. However, if a spouse is caring for a qualifying child, the spousal benefit is not reduced.

If a spouse is eligible for a retirement benefit based on his or her own earnings, and if that benefit is higher than the spousal benefit, then we pay the retirement benefit. Otherwise we pay the spousal benefit."

So it looks like you must have filed for benefits- whether you begin collecting or not, then your spouse can get the greater of her benefit or half of yours after she reaches 62.

The SSA site is searchable and works pretty good.

Jim Ricks

 

[jlf58]

We are both 52
Not significant but enough to qualify but I am pretty sure 1/2 of mine is more.
I just need to know how much she can get at 62 ?

How old are you now?
How old is your wife now?
Does your wife have a significant earnings record of her own?

 

[Passepartout]

We are both 52
I just need to know how much she can get at 62 ?

You can estimate your benefit at the SSA site pretty easily. Judging by your ages and what's going on re:Gov't income, it will be a fairly rough estimate. The closer you get to age 62, the more accurate the estimate will be. Remember, as I posted above, in order for her to receive half of your benefit, you would have to apply (whether or not you actually receive them) for benefits, which would be about 60% of your benefit at Full Retirement Age (FRA=67). So her spousal benefit would be 50% of 60% of your FRA benefit. Prolly not much... Jim

 

[Blue Skies]

The following excerpt is from "The Smartest Retirement Book You'll Ever Read" by Daniel Solin, page 113:

When retiring, a woman can choose her own benefit or a portion of her husband's full retirement benefit, if it's larger. (Full retirement age is between sixty-five and sixty-seven, depending on your birth year.) If the wife waits until her full retirement age to make her claim, she could pocket 50 percent of her husband's full retirement age benefit. If she starts receiving her checks at age sixty-two, she'll qualify for only 37.5 percent or less of her husband's full retirement age benefit.

Before a lower-income spouse can take any benefit from a higher-income spouse's Social Security, the higher-income spouse must have either begun receiving payments or filed and then suspended payments.

 

[Conan]

Hi again

Since you're both the same age, your wife can't apply for half of your benefits when she's 62 unless you apply for your own benefits at that age. [If you were born in 1959, your normal retirment age is 66 years 10 months.]

Your age 62 benefit is about 75% of what you would get at normal retirement age, so you'd both be taking that cut (75% + 37.5% compared to 100% + 50%). Plus you'd pretty much have to stop working at age 62 to get that benefit, since there's a cutback for earnings in excess of about $15,000/year if you keep working (the cutback ends at normal retirement age).

There's a technique called "file and suspend" where you apply for benefits and ask that payment be suspended, as a way for her to start getting her 50% of the benefit you filed for, but it won't work in this case because you're not allowed to file and suspend until you reach your own normal retirement age.
http://www.nytimes.com/2009/07/11/your-money/11retire.html
http://gotoretirement.com/2009/12/understanding-social-security-claim-suspend-strategy/
http://www.investmentnews.com/assets/docs/CI62022619.PDF
http://planit.cuna.org/027815/article.php?doc_id=3122

 

[denverbob]

We are both 52
Not significant but enough to qualify but I am pretty sure 1/2 of mine is more.
I just need to know how much she can get at 62 ?

I would not have much confidence that what is true today about social security benefits will be true TEN YEARS FROM NOW.

I'm 62 and I'm not sure what to expect FIVE years from now.

 

[1950bing]

Who or what is the best source to go to to guide one on the best option? Have not applied yet but will be 62 next year.

 

[Conan]

Who or what is the best source to go to to guide one on the best option? Have not applied yet but will be 62 next year.

Start here:
http://www.ssa.gov/onlineservices/

But if you're going to keep working beyond age 62 then unless your earnings are less than about $15,000/yr there's probably nothing to do until you reach your Medicare (age 65) and Social Security (age 66) qualification ages.