One other thing to consider is that if your brother passes away (hopefully not for many decades!), your SIL would be eligible for survivor benefits. Those are calculated differently than spousal benefits. As a widow, she could get 100% of what your brother was receiving if she's at her full retirement age when she claims survivor benefits. However, if she claims survivor benefits early, they'll be reduced. The reduction factors for survivor benefits are different than for retirement or spousal benefits. This is why Social Security planning for couples often involves considering the higher earner delaying as long as possible (to age 70 ideally) to maximize the survivor benefit for whichever spouse lives longer.

After reading through this whole thread, I think your SIL has essentially three options: 1) Claim now at 63 and accept permanent reductions to both her retirement AND spousal benefits. This gives her income now but less income later. 2) Wait until her FRA to claim either benefit. This maximizes her spousal benefit when your brother claims. 3) A compromise approach: If she absolutely needs income now, she could consider whether she qualifies for any other benefits (like spousal benefits from a previous marriage if applicable) or look at other income sources to bridge the gap until FRA. The deemed filing rules that took effect for people born after January 1, 1954, eliminated many of the clever claiming strategies that used to exist. Now, when you file for one benefit, you're effectively filing for all benefits you're eligible for.

Something else to consider: if you have any periods of employment where you DID pay into Social Security (outside of your non-covered pension job), you might qualify for your own Social Security benefit. If that's the case, you wouldn't be subject to GPO on those benefits - only on the spousal/survivor benefits. This could potentially increase your total retirement income. Do you have any work history outside of your pension-covered employment?

That could absolutely make a difference! Those 8 years of covered employment would contribute to your own Social Security benefit, which would not be reduced by GPO (though it might be affected by WEP, but differently). In fact, if your own benefit is higher than your reduced spousal benefit, you'd receive your own instead. When your husband passes, you'd then get the higher of: your own benefit OR your reduced survivor benefit. Having multiple income sources can significantly improve your financial situation. I strongly suggest getting a Social Security benefits analysis to see exactly how these calculations would work in your specific case.

After reading all these comments, it sounds like you'd really benefit from getting a personalized analysis of your situation from SSA directly. When I finally got through to them after using Claimyr, the agent ran several different claiming scenarios specifically for our financial situation. They showed us the lifetime benefit totals under different life expectancy assumptions. For a decision this important affecting potentially hundreds of thousands in lifetime benefits, it's worth getting expert advice tailored to your specific circumstances rather than general opinions.

did u check what ur spousal benefit would be when u retire?? my friend got more from her husbands record than her own even tho she worked 30 years

Thank you everyone for the responses! I'm going to apply online in March 2025 (4 months before my July payment). I feel much better knowing I don't have to worry about the earnings limit after reaching my FRA in June. One last question - do I need my birth certificate for the online application? I have my passport but not sure where my birth certificate is right now.

word of caution about applying online - i did that but there was a GLITCH and my application disappeared!!! had to start all over by phone. maybe things are better now but that was only last year. i'd recommend calling AND applying online to be safe

For the indexing thing - just know that they only use your highest 35 years of earnings when figuring ur benefit. If u worked 42 yrs like u said, they'll throw out ur 7 lowest-earning years. Also they adjust all those earnings to current dollars befor calculating. its complicated!!!

I had a similar situation with the tax withholding issue. I'd recommend selecting the 12% option on the W-4V unless you have significant other income. The 7% is rarely enough to cover the tax liability for most retirees with pension or investment income. After you submit the form, you can check your mySocialSecurity account about 30-45 days later to verify the new withholding amount is being applied correctly. Regarding the indexing factors, it's also worth knowing that earnings after age 60 aren't indexed (they're counted at face value), which can make understanding the formula a bit confusing.