Dear Rusty: I reached full retirement age (FRA) back in June, but I have not yet filed to collect Social Security (SS). My husband currently collects SS funds, and he waited until he had reached his FRA a few years ago. I am considering signing up now to receive my funds, but I am a […]
Dear Rusty: I reached full retirement age (FRA) back in June, but I have not yet filed to collect Social Security (SS). My husband currently collects SS funds, and he waited until he had reached his FRA a few years ago. I am considering signing up now to receive my funds, but I am a little confused about whether I will receive my full benefit or is there some kind of adjustment made based on both of us collecting? We are a simple case. We have been married for 46 years, so there are no other exes involved in this equation. He did everything online when he was ready to start receiving his funds, but we didn’t consult with any advisor when my husband claimed. Now I think that adding me as a spouse might trigger some other things I should consider. Thank you for your advice.
Signed: Concerned Wife
Dear Concerned: Since you and your husband have both reached your respective full retirement ages, you are both entitled to receive your full benefits without any reduction. And since you haven’t yet filed, you are now accumulating delayed retirement credits (DRCs) at the rate of 0.667 percent additional benefit for each month you continue to delay. You will get your full SS retirement benefit (plus any earned DRCs) when you claim. The only question you need to consider is whether either you or your husband will be entitled to a “spousal boost” (an increase) when you claim.
If the SS retirement benefit you were entitled to at your FRA is less than 50 percent the amount your husband was entitled to at his FRA, then you will get a “spousal boost” on top of your own SS retirement amount (the “boost” amount would be the difference between your FRA amount and half of his FRA amount). But if your SS amount at your FRA is more than 50 percent of your husband’s FRA entitlement, then you will only get your own SS retirement benefit based on your own lifetime earnings record. Spouse benefits are always determined from each partner’s FRA entitlement, and if one partner’s FRA amount is less than 50 percent of the other partner’s FRA amount, then a spousal boost will be given. And that also works if your FRA entitlement is higher than your husband’s — if your FRA amount is more than twice your husband’s FRA amount, then he will get a spousal boost from you. Otherwise, each of you will receive only your personally earned SS retirement amount, and both of you collecting SS will not negatively affect each other’s individual SS benefit.
FYI, the spousal-boost amount stops growing at full retirement age. So, if you are eligible for a spousal boost from your husband, then you should claim your SS benefits now and ask for benefits retroactive to June (your FRA month). However, if you will not get a spousal boost from your husband, you have the option of delaying even further and earning more DRCs (thus a higher monthly benefit). You can earn DRCs up to age 70, at which time you will receive the maximum possible Social Security benefit (about 127 percent of your personal FRA amount if you delay that long).
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.
Russell Gloor