Can my wife switch from early retirement at 62 to spousal benefits at 65? (Social Security)

Unfortunately, the rules changed back in 2015 with the Bipartisan Budget Act. Your wife can't "switch" to spousal benefits later if she claims her own retirement benefit first. When she becomes eligible for spousal benefits (which would be when YOU file for your retirement), the SSA will pay her the higher of either her own reduced benefit or the spousal benefit (which would also be reduced if she's under her FRA).

my mom tried to do this exact thing and it didnt work out like she thought. she got her own benefit at 62 (reduced) and then when my dad claimed at 66 she only got a small additional amount, not the full 50%. something about deemed filing...the SSA office explained it but it was complicated.

The previous replies are correct. What happens is that when your wife becomes eligible for spousal benefits after you file, the SSA will calculate what's called a "combined benefit." She'll receive her own reduced retirement benefit PLUS an additional amount to bring her up to the spousal benefit level IF the spousal amount is higher. For example: If her full retirement benefit at her FRA would be $1000, but she takes it at 62, she'd get about $700 (30% reduction). If 50% of your benefit is $1500, she wouldn't get the full $1500 later. Instead, she'd get her $700 plus an additional amount to reach the reduced spousal rate (which would be less than $1500 if she's under her FRA when you file).

Thanks for all the replies. This changes our strategy quite a bit. So it sounds like she should probably wait until I file at 67 to make her decision? If her benefit is significantly lower than mine, would it make more sense for her to just wait and only take the spousal benefit?

WHY does the government make this so complicated??!! I spent 3 HOURS on the phone trying to figure out the same thing for me and my husband. The rules are RIDICULOUS and seem designed to confuse people. Every agent I talked to gave me different information. How is anyone supposed to plan properly????

If wife benefit is WAY lower than yours, sometimes it still makes sense for her to file early. You need to calculate her "break-even point" which is usually around 78-82 years old. If she takes reduced benefits at 62, she'll collect for 5 more years than if she waits until 67. So depends if you need the money now and your life expectancy. My aunt took hers at 62 and its still better than if she had waited even though shes 85 now!!!

To answer your follow-up question: If her own benefit is SIGNIFICANTLY lower than the spousal benefit would be, then yes, it might make sense for her to wait until you file. However, this depends on several factors: 1. How much lower is her benefit? If it's close to 50% of yours, early filing might still work out. 2. Do you need the income now? 3. Family longevity/health considerations 4. Other retirement resources I'd recommend making an appointment with SSA to get benefit estimates for different scenarios. You can also use the calculators on ssa.gov.

just wanna add that my parents found it was better for my mom to take her own reduced benefit at 62 even tho it was WAY less than my dads, because they invested that money and it grew enough to offset the reduction. something to think about if ur good with investments!

Based on your last comment about her benefit being 35% of yours, here's what I would suggest: 1. Calculate exactly what her benefit would be at 62 (approximately 70% of her FRA amount) 2. Calculate what 50% of your FRA benefit would be 3. Determine if there's a significant gap between these numbers With such a large difference (her benefit being only 35% of yours), waiting until you file at 67 MIGHT maximize her lifetime benefits. However, that means potentially giving up 5 years of payments (from 62-67). The SSA has a tool called "Retirement Estimator" on their website that can help with these calculations. You might also want to consult with a financial advisor who specializes in Social Security strategies.

Just went through this with my husband. I was so confused about the spousal benefit thing too. My sister in law told me to just wait until my husband filed but I didn't listen and now I'm getting way less than I could have. Definitely do your math carefully!!

Thanks everyone for the great advice. I think our next step is to get the exact benefit amounts from SSA and then run the calculations for different scenarios. It sounds like there's no simple answer - we need to look at our specific numbers and situation. Really appreciate all the responses!

One thing I'd add that hasn't been mentioned - make sure you also consider the Medicare implications. If your wife waits until 67 to claim any Social Security benefits, she'll need to think about how to handle Medicare Part B enrollment at 65. She can delay Part B if she has qualifying employer coverage, but if not, there could be late enrollment penalties. Just another factor to weigh in your decision-making process alongside the benefit calculations everyone else has outlined!

Great point about Medicare, Andre! That's something a lot of people overlook. Another consideration is that if your wife does decide to wait until you file at 67, she should still create her my Social Security account online and check her earnings record now to make sure everything is accurate. Any corrections need to be made before she claims benefits. Also, even though the "file and suspend" strategy was eliminated in 2015, there are still some nuances around timing that could affect your overall household strategy. For instance, if you have significant age gaps or health differences, that might influence the optimal timing. The SSA's "When to Start Receiving Retirement Benefits" publication has some good worksheets to help with these calculations.

As someone who recently went through the Social Security claiming process, I can confirm what others have said about the 2015 rule changes. The old "claim now, switch later" strategy is no longer available. However, I'd suggest one additional step that really helped me: consider meeting with a fee-only financial planner who specializes in Social Security optimization. Yes, there's a cost, but given the permanent nature of these decisions and the potential dollar amounts involved over your lifetimes, it might be worth the investment. They can run multiple scenarios using software that accounts for inflation, life expectancy, and other factors that the basic SSA calculators don't always capture. Also, don't forget that if either of you has government pension benefits (like from teaching or other public service), the Windfall Elimination Provision or Government Pension Offset rules might further complicate your calculations. Good luck with your planning!