Shouldn’t my spousal benefit be 50% of my husband’s social security retirement benefit?

Shouldn’t my spousal benefit be 50% of my husband’s social security retirement benefit?

Hi Larry, I was born in October 1939. I took my retirement from Social Security at age 62. My husband and I were married in 2018. He was also born in 1939 and also retired from Social Security at age 62. My husband’s PIA is greater than mine. I applied for spousal benefits after we got married and got spousal benefits starting in November 2019, but it’s over 50% of your retirement benefit. Shouldn’t my spousal benefit be 50% of your retirement benefit rate? We don’t want to have to pay any overpayment at some point. Thanks Jeanie

Hi Jeanie, any age reduction applied to a person’s Social Security benefits is calculated independently based on their age when they start receiving the benefit.

For example, let’s say June, who was born in 1939, applied for her Social Security retirement benefits at age 62. The June Full Retirement Age Rate (FRA), or Primary Insurance Amount (PIA), is currently $ 800, but her actual rate drops to $ 630 because she began receiving her benefits at age 62. In 2018, June married Ward, who was also born in 1939. Ward’s current PIA is $ 2,000, but she also began receiving her benefits at 62, bringing her benefit rate down to $ 1,575.

When June applies for spouse benefits, her unreduced spouse rate would be calculated by subtracting her PIA from 50% of Ward’s PIA, which in this example is $ 200 (i.e. $ 2,000 / 2 – $ 800). The June spouse rate would not be reduced by age since you have already passed the FRA when you are entitled to spouse benefits. Therefore, June would be paid her own reduced retirement benefit of $ 630 plus her unreduced spouse rate of $ 200. So in this example, the total June benefit amount of $ 830 is more than 50% Ward’s benefit rate of $ 1,575, even though he is receiving marital benefits. Better, Larry

Can I claim my late husband’s record and defer my Social Security retirement benefits until age 70?

Hi Larry, I’m divorced and 62. My ex-husband of 13 years passed away in February. As a divorced widow, can I claim a benefit on your record now and delay my own retirement benefit until I am 70 years old? My retirement benefit would be higher than any benefit on your record at that time. Does income play into the equation? Thanks sally

Hi Sally, yes you can, but only if you are not currently married or if your current marriage happened when you were 60 or older. But if you’re working, your benefits may be partially or fully withheld until you reach full retirement age (FRA) depending on how much you earn.

If you’re right that your retirement benefit rate would be higher than your ex’s, you may want to claim survival benefits now or as soon as your earnings allow at least some benefits to be paid, then switch to your own highest profit qualifies when you reach 70.

My company’s software, Maximize My Social Security or MaxiFi Planner, could analyze your situation and help you determine your optimal submission strategy, so you may want to use it, especially if you will be working between now and your FRA. Social Security calculators provided by other companies or nonprofits can provide appropriate suggestions if they were built with extreme care. Better, Larry

Can I get my own totaled social security benefits and claim marital benefits?

Hi Larry, I am 62 years old and I am eligible for the normal German retirement pension when I turn 66. It will be limited since I have not paid since spring 2003 when I moved to the United States. I am a US citizen now. My American husband retired from the military and will do so from his civilian job in a few years. Can I get my own Social Security totaled with minor US credits AND claim a spousal benefit from US Social Security? Will spousal benefits be reduced? Is there a threshold up to which I am allowed to claim both? Thanks almut

Hi Almut, you could only receive a totaling benefit from the US if you have at least six and less than 40 quarters of Social Security (QC) coverage. If you have at least 40 QC, you will qualify for regular Social Security retirement benefits, but your benefit rate will likely decrease due to the Unexpected Elimination Provision (WEP). However, any WEP reduction applied to your benefit rate would not begin until you actually start receiving a pension based on your earnings that were not subject to US Social Security taxes, such as your German pension.

However, if you are receiving a totalization benefit, no WEP reduction would apply. But a completely different benefit calculation formula is used to calculate totalization benefits as opposed to the formula used to calculate regular Social Security retirement benefits. And regardless of the calculation method used, your benefit rate will decrease by age if you start drawing before your full retirement age (FRA).

You may not be eligible to collect spousal benefits at least until your husband begins receiving his retirement benefits. And you will only be eligible for spousal benefits if 50% of your husband’s primary insurance amount (PIA) is more than your own PIA. A person’s PIA equals the amount of their Social Security retirement benefit if they start drawing in FRA. However, if you qualify for spouse benefits, those benefits would not be reduced by either WEP or the Government Pension Compensation (GPO) provision. WEP can only be applied to Social Security retirement or disability benefits based on a person’s earnings history, and foreign pensions are excluded from counting as a government pension for purposes of the GPO provision. Better, Larry