How to Maximize Social Security Spousal Benefits
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- Опубліковано 7 тра 2024
- James addresses a common concern for a couple approaching retirement through a listener’s question. Listener Rob plans to collect Social Security early at 62, raising questions about his wife’s retirement.
Understanding Social Security strategies to avoid potential losses during retirement is important.
James explains the intricacies of spousal benefits, detailing how they are calculated based on the primary earner's full retirement age benefit.
Key Takeaways:
-Wait until full retirement age to maximize spousal benefits
-Primary earner must start to start collecting for the spouse to be eligible
-Nuanced calculations involving the spouse's own retirement benefit
Questions Answered:
When should a spouse collect Social Security spousal benefits?
How are spousal benefits calculated?
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⏱Timestamps:⏱
0:00 - A listener’s question
3:00 - Two SS options
5:17 - Spousal benefit amounts
7:24 - When spouses can collect
8:55 - Spousal + primary benefits
11:59 - Implications of collecting early
14:16 - The good news
16:00 - The key takeaways
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James, nice video!
I had to figure this out 10 years ago at age 58 when my wife and I both retired. She is 6 years older, and her SS earnings were a lot less than mine.
I made several pages of Excel spreadsheets: her SSA earnings, my SSA earnings, and our combined SSA earnings.
That information helped us decide when each of us should file. She was just short of her FRA so had a slight reduction. I wasn’t eligible for benefits for a couple of more years - and filed at age 62. The wife’s benefits immediately bumped up to half of my FRA benefit (with a slight reduction since she had filed a couple of months prior to her own FRA.
You explained the process precisely as it worked for us.
I loved my work - but retirement has allowed us to travel together while we are both physically able. We are truly blessed.
By filing at 62, it may eventually cost us a couple of hundred thousand if we live to Age 95 - but missing the opportunity to see the world would have been a tragic loss.
Thanks for your example.
Yep! Better live life before we die!
At 80, you’ll be using a walker and at 85, in a wheelchair. My FIL died at 79 due to diabetes complications, and my MIL has been in a wheelchair since 86 (she’s 90). If they haven’t done the things they did in their 60’s, they would just see the world via TV. Given the diets, foods, toxic chemicals from everything manufactured, and obesity of Americans, life after 70 is pretty dismal due to poor health even if they are living past 85. Watching 🇺🇸 American cruise ship passengers, I told my wife we cant wait to travel if it means our health will become like those people.
I'm curious how anyone taking SS benefits at 62 in order to travel etc and have more dispoable income while younger and active, deal with medical insurance costs! If one is not on medicare at age 65, then presumably most of us have to use the ACA plans (Obamacare) and that is HORRENDOUSLY expensive if one takes > $76k a year in total household income as then you don;t qualify for the ACA subsidies, which can be and extra $20k-$30k a year in premiums!!!!
I'm in pretty much the same situation. I've earned a lot more than my wife -- she is 7 years older than me. The takeaway for me is that she shouldn't start taking an Benefits until SHE hits 67, or she'll take a penalty for the rest of her life. So she start taking her own benefits at 67, and switch to my spousal benefits sometime after she's 69 (and I will have finally hit 62)
You explained this more clearly than anyone. Thanks for being willing to share this info. It’s surprising how difficult it is to find answers to these seemingly common situations.
You should make an addition to this question and address how taking it early affects survivor benefits . Good video.
You get only 70 to 71% if taken early. I was qualified when I turned 60. But a detailed video would be nice.😊
James, you are such a good teacher - always crystal clear with this complex stuff. Thank you!
I googled this and cannot believe how confusing the articles were. This was outstanding!
I've listened to numerous SS spousal benefits discussions and this was by far the best most concise explanation I have heard well done.
Thanks for covering this topic, James! I also look forward to learning about spousal survivor benefit in a future segment as my wife is somewhat younger than I, and has not been a high income earner.
This is incredibly well presented with truly extremely important and useful facts. About the very best I've seen. Thank you so much for the work and effort in putting this together!
Thanks SO much for using the question as an example for multiple scenarios, it was EXTREMELY helpful in understanding the intricacies of the process. You mentioned several things that are great to be aware of for planning.
Very clearly addressed. I will tune in for more. Good job!
Thank you so much for making this ambiguous topic so clearly explained. I have clients who are in the same age category as your case example. Now, I have a better understanding for myself and for my clients ❤
What an excellent, clearly explained video on spouse benefits. So happy I found your channel ❤👏🏻👏🏻🙏🏻
Thank you for your concise explanation on all the different scenarios. It was much appreciated
you answered so many questions! Thank you!! Love your videos!
Just talked about this earlier this week w/ our financial advisoer: the spouse w/ the lower SS benefit is eligible for up to half of the higher benefit.
* NOT up to half of anything over full retirement age (say if higher spouse works until 70, lower spouse can still only claim 1/2 of 67)
* Lower spouse can start drawing their benefit early, but cannot file for the adjustment until the higher spouse files because the the actual benefit of the higher spouse is not known until they retire due to the percentage increase based on passage of time after becomng eligible at 62.
* THE answer to the question we originally had: if lower spouse starts collecting early and then files for the increase after higher spouse retires, that actual benefit will NOT be a full 50% of what higher spouse draws. It is adjusted via a formula *surprise* to account for all the benefits the lower spouse has already collected between that time and when they themselves first filed. So maybe mid/high 40 percentages range but not the full 50%.
You're welcome.😊
Thank you so much for this very clear explanation of spousal benefits! It has helped me tremendously!
Thank you very much! You really cleared up the questions I had.
Thank you. Very easy to understand. God blesses you and your family.🙏🏼
I didn't expect to learn anything new, but I did! Thank you!
Thank you, once again for another excellent video👍🏼
Another really good video. Truly appreciate your time and effort to put this content together. and boy, he "right answer" on SS gets pretty sticky, pretty darn fast... Add'l videos on specific, real-life SS cases would be great.
Boy did I need to hear that discussion... Thank you for your clear explanation of this important topic. You just put more $ in our pockets!
Well done! Very clear for those getting ready to retire.
As usual, cleanly presented content.
Best explanation of social security I have heard
Thank you for the great question and very clear, thorough answer. Having just started to collect Social Security early at 63, it's comforting to know that my younger wife's spousal benefit will not reduced by my decision to collect early. And, that it will be her decision when to retire that determines whether she collects 50% of the full benefit.
Great video!! Thank you for explaining all of this. Now i understand =)
Thank you for making this video.
great information, presented very well. Thanks
I had the same question. Thanks a lot!
You got it right! Good job James. Can't tell you how many Financial Planners think the spousal benefits are reduced if the primary wage earner files early. (prior to FRA) I'm a retired Social Security Claims Specialist now working as a Benefit Advisor.
That’s what I thought, too, based on reading articles and watching videos. Thank you for confirming James’s information.
Hi. Maybe you will see this. Better yet respond. I am 66 3 mis old. Just got 1st SS check on survivors benes. ( mine is higher) so my projected SS. Went down quite a bit from estimates I recd prior to taking his SS. I feel this has to be a mistake. I took screen shot of my est. Ss. She quoted me 900 less if I took mine at FRA? I know its an estimate this lkes no sense. Last years earnings havent posted yet.
I think you did a great job in describing several different options for collecting spousal benefit and the restrictions within those options. I am 68, my wife is 69. I've paid in my whole working life, my wife has not. She gets $18 per month after Medicare. I started drawing at 62. We are immediately going to SSA to get the spousal benefit for her. What a difference that will make for us! Thanks!!
Sorry you lost out on at least 2 years of spousal benefit. Hope you are all set now
Am 58 retiring next year but the thought of retirement gives me weakness. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you never imagined to happen. It’s so difficult for people who are retired and have no savings or loved ones to fall back on.
Thank you for explanation
Very thorough explanation, thank you.
Very nicely explained. Thanks!
Thank you ; great info!
Wow. Great breakdown
Another great job of making a complex topic easier to understand! Thank you. James, if you have not covered this topic, please do a show on what the folks at the SS office can actually tell me when I walk in the door to sign up for benefits.
Very helpful! Thanks!
Great Information video. Can you do a video on survivor benefits which were mentioned in the video.
Great video!
Very thorough. Thx
Good explanation! Want to try to tackle spousal benefits with dependents? That is even more confusing.
The case that nobody seems to cover is the one folks are asking about: What happens if the Spouse files on their own record BEFORE the Worker files on theirs?
My understanding is that the Spouses OWN benefit will be reduced, but the Spousal portion will NOT, as long as the Spouse is at FRA when the Spousal portion is added.
Example:
Spouse PIA is 600 and Worker PIA is 2000. Full Spousal benefit would be 400.
If Spouse files for both at FRA (67), Spouse's TOTAL benefit would be 1000 (600 + 400)
If Spouse files for own at 62 and Spousal at FRA, Spouse's TOTAL benefit would be 850 (450 + 400)
if Spouse files for both at 62, Spouse's TOTAL benefit would be 750 (450 + 300)
(Would love for James to confirm this!)
My question is around Deemed Filing rules. If Spouse files early, but Worker then files before Spouse's FRA, is Spouse immediately Deemed Filing, so they would receive a reduced Spousal benefit? Or could they continue on their own record until FRA, and then add the full Spousal portion?
Yep, your example is exactly the scenario that I'm trying to figure out. Specifically the middle line Total calculation. It would depend on how the spousal benefit is calculated at the spouses FRA. Is it still $400, or is it calculated to achieve the full $1000?
Exxxaaactly. We are in that situation and I have yet to be able to calculate what my wife will receive. I think I got it close using numbers similar to what you described. My wife started collecting at age 62 as she was no longer working. She is 3 years older than me and I am still working. Her monthly payment is only $485 because she didn't work all that much. My benefit will be considerably more even at age 62 but I plan on going to age 65 which will put my benefit around $2800. I understand that is below my full retirement amount. As near as I can tell her benefit will be reduced 34% below half of my benefit. Does this sound correct to you? I have looked everywhere and even ordered a book on Amazon and still don't have the number figured out. Good post!
Very nice explanation.
I’m a first time learner and I’m very happy to have found your channel 😊 Greatly appreciated
Very helpful! Thx for informing us about the 1/2 of DEAD SPOUSE FULL RETIREMENT BENEFIT. A graphic example would help us visual people! Thx!
Huge help!
I appreciate you explaining this subject very much, but when it comes to numbers, I wish you showed it with visuals. Thanks.
Great video
James, this is a very helpful information. Since you spend so much time making this clip, using a whiteboard or digital text to go along with your content would be nice. It will be much clearer by reading the number and listening to your explanation. Just a friendly suggestion!!!!
There are many public employees out there that do not contribute to social security and are affected by WEP. It would be good to know how their situations affect spousal benefits. Your vidoes are great James. Thanks.
Agree !!!
Yes I am trying to find this out too
Great question. My husband makes more than me, but I will have a bigger SS check. Can he choose to receive a spousal benefit off me?
Yes my question too
I just watched 6 videos all basically explaining the benefit, your the first one to say you get your benefit OR the spousal benefit, watching these other videos leads you to believe you get both
Actually, you do get both. If the main earner has a benefit of $3000 at full retirement age, and the lower esrners is $500, the lower earner would get their $500, and in addition, would get another $1000 of spousal benefits. He actually explained this. He actually explained that you could also collect the $500at FRA, and delay collecting the spousal benefit at a later date.
Thank you...
This was VERY helpful. I am 10 months older than my husband (of 34 years), so I will be able to collect my SS for 10 months before my husband begins collecting. Then, after he collects, I will begin to receive that additional amount of the spousal amount. YAY!
Thank you
Awesome video, Mr. Conole! Very informative and well presented. Thank you. I "think" now, I know the answer, but my situation is similar to one of your examples used. My wife and I are both 66 this year (she will be in September, so 65-6mo now). Her own benefit now is about $1100. I don't plan to collect until probably 70, when my benefit will be $4700. (My full retirement @66-8 yr is $3650). Is there any downside to her collecting now? If she can collect her own 1100 now until I collect at 70, it sounds like she will then get raised up to half my benefit then.
Thank you very much. But I wish you have a visual to show us those numbers to help me understand it better.
Thank you for the very simplified explanation. I’ve heard of spousal benefit and now I know I do qualify. I have 0 SS contributions because what we have here in our workplace is pension. Nice to know I will still get some money due to husband’s contributions. Thank you!
Better ask social security about this might be more complicated
took my benefits starting at 62, my wife who was 30 and never worked started collecting also
Thanks for covering this topic, I definitely learned some things. It would have been nice if you had made a few comments on how collecting a spousal benefit would have any impact (if any) on the survivor benefit especially in the case where the spouse was a housewife with no SS history of her own.
Thanks James all the great information which is the most informative around. Quick question in survival spousal SSN benefits, my husband passed away two years ago while he was on SSN; I am 61.5 and still working with good salary. my SSN would be higher than my husband’s if I apply 67. Can I apply for survival benefits if I am still working? Much appreciated if you could advise. Thanks 🙏
It would be helpful if you had some graphs and numbers in spreadsheet to show the tradeoffs
Great detailed explanation. Nice sweater! What brand is it?
thank you for recovering this topic，I want to know if I only have green cards for 4years, and we get married for 5years. can I claim spousal benefits? My husband is 80 years old and already collected his social security benefits. So can I claim spousal benefits? Or I need to wait until I live in the united state for at least five years.Thanks
god bless you
It would be good if you show some math examples as you go through different scenarios.
What about taking my Spousal benefits before my full retirement age, and how does that affect widow survivor benefits in the future
FINALLY! 🙂 I found the answers I was looking for. James, thank you for all you do for the community - it really makes a difference!
My only question: around 10:00 in the video you talk about a spouse who has earned a small(er) amount as compared to the "worker), and can then collect (just as an example) their $600 per month at age 67 then 50% at age 70 (once the "worker" begins their social security). I assume then, that the same could happen starting at age 62 (again, just as an example): if the spouse had a small amount they could claim, could they draw this from age 62 to let's say, 67, then the "worker" starts claiming at age 67...at this point, the spouse's benefit increases from the amount they had been claiming from 62-67 to the full 50%...is that correct?
Thanks again!
The spouse w/ the higher SS has to be claiming in order for the lesser earning spouse to draw off of them. If the lower earning spouse wants to take their SS (like at 62) they can do so but then when they start spousal benefits their will be reduced their spousal benefits will be reduced.
I have a question in regard to the working spouse who continues to work until 70 before filing for social security. From what I understand, the full retirement age benefit is determined by how much a worker has made up to age 60. So does that mean if the workers highest earning years (60 to 70) do not impact that full retirement age benefit? My spouse has passed full retirement age but has opted to continue working. I am not at full retirement age. I am curious about this because as it stands now, I my benefit is $20 less than half his full retirement age benefit and wondered if I should wait to collect too or if I should just settle for half of his lower full retirement age benefit it showed the year he became full retirement age.
Thanks! Very helpful.
I believe there’s another scenario which was not covered in this video.
Assume the spouse (with a marginal SS PIA) starts drawing her own (reduced) benefit at 62. Say …$300/month.
Can she then, at her FRA age (after the primary earner has filed for his FRA benefit ) file for spousal benefits to supplement the reduced benefit she’s been receiving since age 62, up to the 50% of primary earner’s FRA?
Thank you!
I just saw an article saying they're stopping the spousal benefits
We are both of 65. I receive a small amount from my husband’s benefits. I was told I could never get any more money. He has received several raises.
New subscriber here. I would love to hear your thoughts on this scenario: high income earner files at 65 so that low income earner can file spousal benefits, then high income earner continues working where they would essentially lose all benefits in penalty. Would lower-income earner spouse STILL get to receive the spousal benefits based on what the high income earner’s benefits are before penalties? And, isn’t there some sort of recoup of those losses after fully retiring?
Around 11:00 mins, you suggest that a spouse draw their own $600 ss then switch (or add) the spousal benefit once the spouse begins to draw their SS a couple years later. Is that still an option? I thought that scenario was no longer an option. I’m curious because I would love to receive SS based on my record until my ex spouse turns 62 (7 years after I do). From what I’ve read, you cannot switch. You must choose one and stick with it.
a question: is a survivor benefit impacted if the lesser amount spouse takes their benefit early and the spouse with the larger amount takes at full age? when the lesser amount reaches full age 67 and becomes a widow do they receive a reduced survivor benefit because they chose to collect their own smaller benefit earlier than full age years earlier?
If I start collecting my SS benefits at 62, say $2000 and my FRA is 66.6 with a benefit of say $2700, will the COLAs effect any of the calculations if my wife starts drawing her spousal benefit in 5 years when she turns 62?
In another video, a Soc Sec benefit specialist said there is no longer an option to collect 1 Soc Soc and not the other; suspend their own or spouses benefit. Unless, they are a certain age. This might be something you look into.
If you don't find spousal benefits confusing, it's probably because you've never heard of them.
After being married for 29 years, I was told he would have to be dead for me to collect, then another person said that mine is higher then his, which makes no sense as I went on disability, many years before. I think that people who work for SS do not always know the laws, I had another situation also, they prorated my comp settlement into my payments, I had to turn in a form, I was even to,do not to lose that paper, because I was suppose to get that difference back when I went onto SS, nothing on that either. I think SS is cutting corners and screwing people over
I’m so glad that I stayed in the military for 25 years. My pension is was about $55K last year-and the annual COLA is tied to the social security increase. I also receive, non-taxable, 100% disability from the veterans administration -which is almost as much as my military pension. In a few years, my wife will retire from her federal govt career with close to 30 years of service. Her pension will be more than what I receive from my military retirement….plus, by that time, she’ll have a half million dollars in her 401K-like government investment account. Then, down the road, we can start drawing social security-
Sorry if I missed this. If I (the Worker) collect at 62, and my Wife collects at 62, is her benefit based on my PIA (age 67 amount) or my reduced amount? So would she get 30% of my reduced amount, or 30% of my age 67 amount (PIA)?
What I can’t find an answer to is this: I’m the higher earner and also 3 years older than my wife. I started collecting 3 years ago at age 62. At that point, my PIA was a little over 3000 and my benefit, because I filed early, is around 2500. My wife will start collecting this year when she turns age 62. She has her own, smaller benefit that she qualifies for. I know her own benefit will be reduced because she is filing early but is her spousal benefit (which will also be reduced) based on my PIA from 3 years ago or is it based on my PIA from 3 years ago with the COLA increases included (which would make it around 3600).
My wife is 5 years 4 months younger than I am. Our FRA is 67. Her own benefit is small. Right now I'm planning to file at age 70 (she would soon be 65). I think it makes sense for her to file for her own benefit at 62 and start receiving 70% of hers (30% off) when I am 67. Then when I file at 70, she could get (1/2 mine - (0.3 X hers)). Then when one of us dies, the other continues with my max benefit. Assuming I understand everything correctly... Not that they make it easy.
If your spouse collects at 62, she can never get 50% of yours. She has to be FRA to collect 50% of yours.
Very informative but I wish you would have answered the specific question first then explain the entire spousal benefit issue.
How are the benefit amounts actually determined? Is it by computer, or does a person make the determination? Is there a review or audit process? Is your understanding based on reading the actual law, or reading publications, or review of actual cases. Do they ever get it wrong?
Hello James.If I am getting a spousal benefit at 62 and my spouse dies before my FRA which is 67.I know the survivors benefit automatically begins when I notify SSA about his death.Am I required to take a lower survivor benefit due to my under FRA or can I pause the survivor benefit until I reach FRA so I am able to get his full benefit amount?
i need a chart a table something. this is so confusing!
You didn't talk about spousal survivor benefits. Kinda important when deciding when the primary benefit spouse should take social security.
Another question, if I am getting a spousal benefit now then later on I collect my full retirement benefit of $3,750 at age 67, am I still entitled for 50% spousal benefit Of $1,250?
James, I have a different scenario I do not see an explanation for anywhere on line. I am already retired at full retirement age. My wife is 60, 10 years younger and her retirement age is 67 and she is working. However I am not sure she will meet the retirement requirements by 67 and anyway she will not qualify for more than half of my SS pay. My question is, should she start collecting retirement at 62-63 (as I would like) and if she still chooses to work, how much from her income will be taken off from SS and is that calculated based on Gross pay, Total Reported Wages for Wages,Tips, Other comp, Total Reported for Soc Security or Medicare? She is maximizing 401K, IRA, HSA and we maximize IRA and Roth to keep taxes to a minimum.
Do all the same rules apply if the worker became disabled at 58 and started drawing his social security disability?
It is my understanding, that the spousal benefit does increase due to COLAs on the higher earner's PIA between Full Retirement Age and age 70.
True - as with all benefits, after the age 61/62black hole, the COLA applies. But the underlying PIA upon which the benefit is based stops getting delayed benefit credits at age 70.
All benefits have the same COLA.
What happens if you spouse's Social Security has been reduced by the Windfall Elimination Provision since she didn't have SS deducted while teaching, but then earned enough credits to qualify for her own benefit.
Thanks for the info, but had a question. In your example, I understand if wife waits until her FRA, she will be eligible for 50% of husband’s PIA, but what if she files before her FRA? Does that mean she would only be eligible only for half of husband’s reduced benefit?
Quick question, So if both me and my spouse earn the same amount, our PIA is the same and there would be no benefit to a Spousal benefit? Since 50% of my benefit is lower than her personal benefit.
I don't think this case was answered in the video, but it may have been.
I'm the worker and at the moment plan to begin to collect at 62. Wife, is able to get spousal benefits. She's also older. Can she begin to claim on her own benefit earlier than FRA and then switch to the spousal later? Believe that's a yes based on the video and other info I've seen. Yet, there is conflicting info out there on that point. Secondly, will the spouse be subject to a reduced spousal benefit based on the time they began collecting their own benefit or is the amount of spousal benefit going to be based only on when they begin collecting the spousal benefit. Would the spouse be able to claim the spousal benefit whenever they choose after the worker begins theirs, or would it be required to be added at the time the worker claims theirs benefit?
Great explanation of how this works! Thank you.
If I heard this right, If we both claim at 62, my spouse can switch over to the spousal benefit at 67 and still receive half of my PIA?
It took you 15 minutes but you finally DID answer Rob;'s and my question. (Did you do that on purpose?) Anyway I also think you covered a lot of other scenarios. so thank you.
He did what excellent retirement content providers do - he first generalized the content to a broader audience… before jumping to the narrow scenario asked.