SS question only pros might know - benefit amounts

davidrmoran

An SS question that only pros might know, like msf or others who have either been through it or had to crunch the numbers in advance ... (cannot find anything by googling) :

If one does apply - delay (file - suspend) at the proper age (FRA), and one's spouse starts taking her monthly (which is greater than her own benefit would be), then, when the primary turns 70, does the spouse benefit ('spousal benefit') increase to the primary's 50% point? (He has not taken any SS, has waited until endpoint of 70.)

In other words, say the early file - suspend spouse monthly benefit is $500. In a few years the primary turns 70 and his monthly benefit, which now has to be taken, is 2000. Does the spouse monthly go from 500 (plus any CoLAs) to $1k?
TiA.

msf

I don't think so. Not the clearest statement (the best I could find on a very quick search):

The spousal benefit can be as much as half of the worker's "primary insurance amount," depending on the spouse's age at retirement. If the spouse begins receiving benefits before "normal (or full) retirement age," the spouse will receive a reduced benefit.

https://www.ssa.gov/oact/quickcalc/spouse.html

The primary insurance amount is one's full retirement age amount. It seems that the only thing that affects the size of the spousal benefit is when that spouse starts drawing, not when the primary does.

davidrmoran

yeah
I got a different answer from SS over the phone, but your cite is and was my understanding
will know for sure in another month or two

davidrmoran

Thanks
We are 2y apart, and did whatever the AARP retirement timing calc strongly suggested.

jerry

I do not think your question is answered but the latest Kiplinger's has an excellent and lengthy article on social security . I gather file and suspend no longer can by done but there is something still available if you are born prior to 1954

davidrmoran

that's right

davidrmoran

Looks like I was misinformed by SSA rep several months ago, although it may've been faulty understanding on my part. I did take notes, including the math and figures given. Whatever. This from InvestmentNews several years back conforms w msf post:

... when the husband begins drawing his retirement benefit at 70, which will boost his benefit by 32% compared with his full retirement age, his wife won't step up to a larger spousal benefit. Remember, spousal benefits are based on half the full retirement age benefit, not half the larger enhanced benefit.
The wife can receive spousal benefits only if her husband claims his benefit or if, as in this case, he files and suspends to trigger her benefits and delays collecting his own. The file-and-suspend strategy is available only to those who wait until at least their full retirement age to claim benefits.

Phooey. Assuming it's true, which I'll know for 110% sure in another month, that's going to affect the budgeting.

Now I have to crunch the tax numbers of SS plus RMD and see again if taking something from Roths is worth it to keep out of higher bracket.

(Rich people's problems, yeah.)

msf

You'll know for 110% sure? No wonder you're having problems with their figures

davidrmoran

That was an attempt at a wee joke. I am sure enough now, and will be even surer in three or so more weeks .

I am not so much having problems with the math as puzzlement at having listened very carefully to the SSA person while she went through the math and the monthly incrementations, giving me totals along the way, including spousal.

Of course I just read a headline that SSA phone answers are more often inaccurate than they'd like (duh).