Ask Rusty
Friday, July 14, 2017 8:13 am Dear Rusty: I would like to know more about spousal benefits allowing a husband or wife to receive up to 50 percent of a spouse's Social Security benefits. I believe it is called spousal deeming of Social Security benefits, and I'm wondering if this is something we can take advantage of. My wife, who is 64, has not retired yet, and I retired in June at the age of 66. Thank you for your time. I hope you can clarify whether or not this is something relative to us Signed: WONDERING You are correct that your wife can receive up to 50% of your benefit, but she will only get the full 50% if she has reached what Social Security considers her "Full Retirement Age" (or "FRA", which for her is 66). If she files before that, her benefit amount will be reduced to something less than 50% of yours, depending upon how many months before her FRA she files. Since you retired at your FRA of 66, you are receiving 100% of the benefit you are entitled to. Since your wife's 65th birthday is approaching in February, if she chooses to retire then she would get 45.8 % of your full benefit instead of 50%. If she chooses instead to retire in December of 2016, she would get 45.1% of your full benefit, and if she chooses to wait until after February the percentage of your benefit she will receive will increase monthly until she reaches age 66 when it will be the full 50%. Please note that filing early has consequences in that once your wife files, her benefits will be at the reduced level permanently; they do not increase at her full retirement age. This not meant to discourage her from filing early if financially necessary, but rather just to make you aware. Note also that this same scenario would apply if the wife was the higher wage-earner and it was the husband seeking 50% of the wife's Social Security benefit.
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