In this video we will explore the options of taking your Social Security benet at 62 and later you decide to take the Spousal Social Security benefit.
Subscribe to our channel 😃
👍 Thank you for a Thumbs Up
Who are we? The Wisdom Investor is all about providing valuable information and education to help you with topics like Social Security, investing strategies, how much to save for retirement, when to retire, where to retire, health insurance, financial independence and more.
Website
2023 Social Security Cost of Living Adjustement is Huge
Can I take Social Security at 62 and still work?
Tax Friendly States To Retire With No Social Security Tax
Where Baby Boomers Are Moving For Retirement
How is Social Security Earnings Limit Payback Calculated?
Will My Social Security Check Increase If I Work?
What is the Social Security Break Even Age?
600K In Retirement How Long Will It Last For Single Person
$400k Retirement How Long Will It Last If Single …(read more)
LEARN MORE ABOUT: IRA Accounts
CONVERTING IRA TO GOLD: Gold IRA Account
CONVERTING IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Social Security benefits are an important part of retirement planning for many Americans. While some people choose to wait until their full retirement age or beyond to start collecting benefits, others opt to begin receiving benefits as early as age 62. For those who choose to start collecting benefits early, there is also an option to take spousal benefits later.
At age 62, Americans become eligible for Social Security benefits, although the amount they receive will be reduced compared to what they would receive if they waited until full retirement age (FRA). Full retirement age varies depending on the year you were born, but for those born in 1960 or later, it is 67. If you choose to begin collecting benefits at age 62, you can receive up to 30% less than what you would receive at your full retirement age.
However, even if you choose to start collecting benefits at age 62, you may still be able to maximize your Social Security benefits in the long run by taking spousal benefits later. Spousal benefits allow a current or ex-spouse to receive a portion of their partner’s Social Security benefit if they have not remarried and were married for at least 10 years. The spousal benefit is equal to 50% of the partner’s FRA benefit amount.
If you start collecting your own Social Security benefits at age 62, you can still take advantage of spousal benefits later in life. However, there are some important things to keep in mind. First, you cannot receive both your own benefits and spousal benefits at the same time. Instead, you will receive the larger of the two benefits. Second, in order to take spousal benefits, your partner must have already filed for their own benefits.
So, let’s say you decide to start collecting your own Social Security benefits at age 62. When your partner reaches their FRA, they file for their own benefits. At that point, you can choose to begin receiving spousal benefits instead of your own benefits. By waiting to take spousal benefits until your partner files for their own benefits, you can maximize the amount you receive.
It’s important to note that taking spousal benefits will not impact the amount of benefits your partner receives. In fact, it can even be beneficial for your partner if they plan to delay their own benefits past their FRA. By filing for benefits, you are essentially allowing your partner to delay filing for their own benefits and earn delayed retirement credits, which can increase their benefit amount by up to 8% per year.
In conclusion, starting to collect Social Security benefits at age 62 is a common strategy for many Americans. However, by taking spousal benefits later, you can still maximize your benefits in the long run. If you are planning to start collecting benefits early, it’s important to consider all of your options and speak with a financial advisor to determine the best strategy for your individual situation.
I worked mostly for cash. What do I need to do to collect SS?
Thank you for the clear and detailed explanation
Thank you!! This is exactly the question I have been wondering about. I thought this was true, but was not clear on the details. Your explanation and examples were perfect and easy to understand. The part I had missed previously was having the lesser earning spouse take SS at 62 would reduce their benefits by 30%, even AFTER switching to the spousal benefit. Thank you again for the clear, concise explanation and detailed examples!!!
Finally, FINALLY, a clear explanation of this situation. I have listened to a number of other explanations that frankly were beyond confusing. You have explained this with clarity, and I thank you for taking the time to publish this information. Signed, a new Subscriber to your channel
Thank you for the video, Richard! Can you please do a video, where 1 person is on SSDI before age 62 and the spouse is 8 yrs younger? What is the potential for Spousal Benefit and at what age will eligibility begin? How does SSDI affect Spousal Benefit fillings? Thanks, Love your videos!
So what happens if after the spouse passes with the higher SS. The example is survoir benefit effected by the reduction for taking SS at 62 or the person reiecves the higher of the survior benefit or their own SS? Not entirely sure on this further step of your examples shown
This is not correct information. When the spouse switches over to spousal benefits from their own benefits, there is no reduction to this benefit if they are at full retirement age.
I finally get it! Thanks for breaking it down so clearly.
so if my FRA is 3200 and my wife's own ss at 63 would be 1600, and she wanted to claim her spousal benefit at my FRA ( that is when I'm planning on taking SS), she would net receive any increase as her own benefit is already at 50% of my FRA, correct?
Richard – Thanks for the informative video. I have a question: The breadwinner (BW) is currently 61 and the non-working spouse (NWS) is 60. Both are retired and have not filed for SS. The BW currently plans to take SS at age 70 and have the NWS collect spousal benefit (which is much larger than NWS PIA) at highest payment point possible. At what age is the NWS eligible to begin receiving 50% spousal benefits? 66 ( the year of BW FRA) or 67 (NWS FRA)? We realize there is no upside on spousal benefit amount past FRA, but we're unclear as to which FRA (BW vs. NWS) is the 50% eligible age. TIA!
Finally! A spousal benefit explanation I can understand. Thank you!
Richard, my wife has been drawing for 12 years, and myself for 8 years. Can she draw spousal benefit retroactive if she makes application now? thanks enjoyed the video.
My ex wife can claim a benefit on my record now
Richard – I would like to challenge your SS spousal calculations in this video, especially in example #1. For a spouse that is entitled to their own benefit, the spousal benefit is comprised of 2 components, The earners benefit plus the spousal topoff benefit. In your example, the lower earner has a PIA of $1000 and the higher earner has a PIA of $2200 which would make the total spousal benefit $1100 as you described. The spousal topoff is $100 ($1100 – $1000). Since the lower earning spouse claimed early, they only receive $700. Also what you described. However, once the higher earner files, the lower earner is eligible for the entire $100 offset since they are both now at FRA. There is no reduction of the spousal topoff once they are at FRA. So the lower earners total spousal benefit would be $800, not the $770 you describe in the video. Not a big difference in this example, but it would be much different if the lower earning spouse had a very low benefit.
I came to America 3 years ago and I'm 63. How do I apply for and get a Federal welfare check each month? My family could use the extra money for Social security!
My husband started to receive his social security last month at his 70 but he is still working. I am 68, can I file social security benefits as a spouse even though I don’t have enough work record for social security credit which is 40?
Richard,
I love your videos, but I think you may have made an oversimplification in your calculations on this one. True, if the lesser earning spouse files at age 62, their benefit will be reduced by 70%, but the spousal benefit portion is reduced at a different rate depending on what age they start collecting the spousal benefit (age of entitlement). 65%, 70%, 75%, 83.3%, 91.7%, and a 100% for ages 62, 63, 64, 65, 66 and 67 respectively. So, if the lesser earning spouse takes retirement at 62, their portion based on their earing is reduced by 70%, but if they take the spousal benefit at age 67, they get 100% of that top off portion. It is complicated, but Devin Carroll has 2 excellent videos explaining all of the details of this here – https://www.youtube.com/watch?v=vH7nkC_katc and https://www.youtube.com/watch?v=PSktJ1Grk10
Thank, Kerry
Loved the video! Let's stay in touch together!
I have always been a stay at home mom. When my hubby turns 67(I'll be 62) and starts getting SS. I can get spousal benefits from him too?? At same time or is it either or? Thanks!
Did it. Know all the disadvantages basically lose 30% on everything my social security and spousal benefit if I take that. Had no choice needed to take the money to pay my rent. Otherwise I would have waited to 70.
Are you considering taking Social Security at 62?