A couple in the United States is seeking clarity on how they can optimize their Social Security benefits. The wife, aged 64 years and 9 months, wants to know if she can claim her own benefits now and later switch to her husband’s, who is 65 years and 7 months old. Her current benefit is estimated at $573 per month, while her husband’s benefit, when he reaches age 67, will be $3,326 per month.
Understanding the rules surrounding Social Security can be complex. The couple’s full retirement age (FRA) is 67 years old. Claiming benefits before reaching this age may result in permanent reductions to the monthly amount. Furthermore, should the wife choose to claim now, she must consider the impact of her current earnings on her benefits.
Impact of Early Claims on Benefits
If the wife decides to claim her personal Social Security benefit now, she will receive approximately 87% of her full entitlement at FRA. This means her monthly amount would be reduced, resulting in a lower payment than if she were to wait until she reaches 67. Additionally, if she is working, she will be subject to the Annual Earnings Test (AET), which for 2025 has a limit of $23,400. Earning above this threshold could lead to a reduction in benefits, with the Social Security Administration withholding $1 for every $2 earned over the limit.
Regarding the spouse’s benefit, when her husband begins to draw his Social Security at age 67, she will be eligible for a “spousal boost.” However, this amount will not equate to half of his benefit. Instead, the boost is calculated based on the husband’s benefit at his FRA, which is $1,663. The wife’s spousal boost will be determined by taking half of her husband’s FRA amount and subtracting her own FRA entitlement.
Calculating the Spousal Benefit
When her husband claims, the calculation will yield a spousal boost. This amount is approximated as follows: 50% of the husband’s FRA benefit (i.e., $1,663) minus the wife’s FRA entitlement, which is likely around $661. This results in a boost of approximately $1,002. However, since the wife will not have reached her FRA when her husband claims, this boost will be further reduced to about $926. Consequently, her total monthly benefit, combining her early claim and spousal boost, would be roughly $1,499.
In summary, the wife has two primary considerations. First, by claiming her Social Security before her FRA, she will not receive half of her husband’s benefit but will instead get about 45% of it. Secondly, while claiming now might provide immediate financial support, it will ultimately result in a lower amount than if she waits until her FRA to claim Social Security.
For further personalized advice, individuals can reach out to experts like Russell Gloor, a national Social Security advisor at the AMAC Foundation, who can provide tailored guidance based on specific circumstances.
