When Should My Wife File for Spouse Benefits?

Dear Confused: First, be aware that your wife's spousal benefit will be based on her age when she claims it, and half of your full retirement age, or "FRA," amount (although you claimed at 62, her benefit as your spouse will still be based on your FRA entitlement).

Because she claimed her SS retirement at 65, your wife will not get 50% of your FRA entitlement; rather she will get her own reduced SS retirement benefit (which was reduced by about 13% from her FRA entitlement) plus a "spousal boost." The amount of that "boost" will be the difference between her own FRA entitlement and half of your FRA entitlement, but that boost amount will also be reduced because she will be claiming in July before her FRA.

Your wife will reach her FRA until February 2027, so by claiming her spousal boost in July her boost amount will be reduced by about 5%, and the "boost" will be added to her already reduced SS retirement about. The result will be your wife's benefit as your spouse will be less than 50% of your FRA entitlement. And, FYI, your wife will be automatically deemed to be filing for her spousal benefit (she will not be able to defer claiming it).

As your son is now collecting SS benefits based on your wife's personal SS record, you should ask Social Security to switch him over to payments based on your record (because you have the higher SS benefit).  FYI, because your son is now receiving SSI (Supplemental Security Income), the SSDI (SS disability) benefit he receives will be offset by his SSI benefit, and the payment amount will consist of two sources - SSI and SSDI. Nevertheless, he cannot get more than 50% of your SS retirement amount and will likely be affected by the Family Maximum which may further reduce his SSDI entitlement.

Your wife's benefit as your spouse will also be affected by the "Family Maximum," which limits how much can be paid on any one person's SS record (on your SS record). That also means that your wife will not get a full 50% of your FRA entitlement; rather she will get less because the family maximum limits how much all your dependents can receive to somewhere between 50% and 88% of your FRA benefit amount (after subtracting your own SS entitlement). That also means that your son's SS payment, as well as your wife's SS payment as your spouse, will be reduced to less than 50% of your FRA entitlement. SSA will be able to guide you through the Family Maximum calculations for both your son and your wife when you meet. 
 
To recap all of this: a) your wife will be automatically deemed to be filing for her spousal benefit; she cannot delay until her FRA.  b) her amount as your spouse will be less than 50% of your SS FRA entitlement. And c) both your wife's and your son's SS benefit will likely be also affected by the Family Maximum and, thus, be less than half of your FRA entitlement. Nevertheless, it was likely the right decision to claim as you have, considering that your son and wife have been receiving SS benefits for some time now, and both will continue to receive more as your dependents.

This article is intended for information purposes only and does not represent legal or financial guidance. It presents the opinions and interpretations of the AMAC Foundation’s staff, trained and accredited by the National Social Security Association (NSSA). NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (amacfoundation.org/programs/social-security-advisory) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, all services are free.