I did go to the Social Security office in Washington State yesterday and after waiting a couple of hours we did talk to a person that said my wife would get her benefit at 62. When I claim my benefit my wife can then claim a percentage of mine but would still claim hers. I wasn't understanding the percentages involved so I called Social Security and think the people were explaining the same thing in different ways. Reading the guide that Pam posted over and over it is starting to make sense.
Am I right thinking that my wife can't claim off my benefit until I take that benefit ?
Thanks
Bill
Social Security is a government program. Therefore, it is complex and confusing as can be.
Let's say your wife claims at 62. She will begin receiving her benefit, but it will be reduced compared to what she would get if she waited until her Full Retirement Age (FRA). And yes, the comment above that the "break even" point in terms of absolute dollars paid out is around 79 or 80 is correct.
You are also correct that your wife cannot claim on your benefit until you file for your own benefit. So if you later file for your benefit, your wife then has a choice. She can continue to receive her benefit OR she can claim half of your benefit, whichever is greater. She cannot receive BOTH her benefit and half of your benefit (that is, she can only receive one benefit).
Your benefit would have to be very large compared to hers in order for it to be worthwhile for her to switch to half of your benefit. Is that really the case? I earned much more during my working life than my wife, but because SS is a progressive program, my benefit is only somewhat higher than my wife's. As a result, her full benefit is still greater than half of my benefit.
Please understand that I am being very simplistic here. It is much more complex than this. Another extremely important factor for married couples to consider is the life expectancy of each spouse. I tend to think of Social Security as longevity insurance. We all hope for a long and healthy life, but God doesn't clue us in on what's to become of us. As an example, if my wife were to outlive me (possibly by many years), I would want her to have the maximum payout from SS over the remainder of her life. So a big part of our SS planning is how to maximize the benefit for the surviving spouse should one of us predecease the other. A widow/widower can only have one benefit, either their own or their spouse's. To say this another way: it's not just about how much money you're going to receive from SS now. It's also important to consider what you might receive from SS in the future and what your future financial needs might be.