Social Security – Filing for Spousal Benefits before attaining FRA

Q: My husband is 60 years old, and I am 55.  He is interested in turning his Social Security retirement income on at 62 and he will probably receive max Social Security retirement benefit due to his high earnings throughout his career.  I was a stay-at-home mother with little earnings. What are my social security benefits if any?
A: The answer is probably easiest to follow with some assumptions about numbers.  The calculation of spousal benefits starts with understanding the husband’s projected benefit at full retirement age (FRA).  This is true even if the husband actually starts collecting his own retirement benefits early.
If his FRA benefits is $3K/month, the base spousal benefit would be $1,500/month.
FRA for the non-working spouse is age 67, and she is eligible to claim benefits as early as attaining age 62. If she claims at 62 (five years early) then

• The base spousal benefit is reduced by 25 percent for the first three early years and
• The base spousal benefit is further reduced by 10 percent for the additional two early years.

Her spousal benefit at 62 would be $975/month (a 35% reduction of the base spousal benefit), based on the hypothetical presented.

  See https://www.ssa.gov/oact/quickcalc/spouse.html.

Note that taking social security early in this case means a lower benefit for both the husband and the wife and will decrease her survivor benefit as well. This may not be the optimal claiming strategy!