Ask Rusty: I’d like to retire early, but don’t want my Social Security cut

Dear Rusty: I will turn 65 [soon] and my husband is age 72 (he retired in 2019 at age 66). I would like to retire and enjoy some time with him before he gets too much older. I do not want to have my Social Security (SS) benefits reduced by retiring earlier, but I don’t see a way to be able to accomplish that. My SS benefit will be $1,343 at my full retirement age (FRA). If I took half his retirement when he retired, it would be less than mine. If I take early retirement and he passes away before me, would I get his full benefit as his survivor, or will it be cut? We are trying to figure this out. His current benefit (before Medicare Part B) is $2,978. It’s very confusing. Signed: Confused and Wondering Dear Confused: Whenever any Social Security benefit is claimed earlier than full retirement age, the monthly amount is permanently reduced. If you were to retire at age 65, your Social Security benefit would be reduced by about 13 percent — in other words, if your FRA (age 67) amount is $1,343, at age 65 you would get about $1,164. And at age 66 you would receive about $1,253 per month. Whether you would be entitled to a “spousal boost” from your husband depends on how your FRA amount compares to 50 percent of his FRA entitlement. If your FRA amount is less than 50 percent of his FRA amount, then you would get a “spousal boost,” but the amount of that boost would also be reduced if you claim before your FRA. (Note: from the numbers you provided, you may be entitled to a spousal boost and, if so, it would be applied by Social Security when you claim). Also, FYI, if you take SS before your FRA and are still working, the Social Security Administration (SSA) has an annual earnings test that limits how much you can earn while collecting early benefits. If you earn more than $23,400 in 2025, you will likely not get all of your monthly SS payments (the SSA will take away some monthly benefits if you exceed the earnings limit). Of course, if you retire from working, this will not be a problem, because earnings before you claim SS won’t count toward the limit. When you claim your SS retirement benefit now will not affect your survivor benefit from your husband later. If your husband dies first, your benefit as a surviving spouse would be based on the amount your husband was receiving at his death. But if you were to claim your widow’s benefit prior to your FRA, your survivor benefit would also be reduced (the amount of reduction depends on how much before your FRA you claim your survivor benefit). If you claim your widow’s benefit at or after you FRA, you will get 100 percent of the amount your husband was receiving at his death (instead of your own smaller amount). It will only be reduced if you claim before your full retirement age.      

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Russell Gloor is a national Social Security advisor at the AMAC Foundation, the nonprofit arm of the Association of Mature American Citizens (AMAC). The 2.4-million-member AMAC says it is a senior advocacy organization. Send your questions to: ssadvisor@amacfoundation.org. Author’s note: 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). The NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration (SSA) or any other governmental entity.