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yep , you are correct . spousal benefits do not keep growing past fra . my wife's benefit growing to 70 out weighs the spousal by 2 to1.
she would have to file 2 years earlier so i could file restricted application earlier , she would give up 2 bucks for every one i get . that reduction is forever while my benefit from it would be 1/2 as much and only for 2 years .
Last edited by mathjak107; 12-16-2015 at 02:59 AM..
Spousal benefits do not see an 8% appreciation if you delay past your FRA to apply--
Isn't that what you referred to in posting "that you lose 8% for each year that you collect earlier"??
If I understand correctly, a person's SS benefit increases 8% every year past FRA up to 70 & the spousal benefit is 50% of that amount.
So it appears that mathjak's wife is suspending her benefit to let it grow. When he collects his spousal benefit, it will be 50% of whatever amount that his wife expects to collect at that time i.e. the spousal benefit increases by the same proportion or effectively increased by 8% every year his wife suspending her benefit past her own FRA.
If I understand correctly, a person's SS benefit increases 8% every year past FRA up to 70 & the spousal benefit is 50% of that amount.
So it appears that mathjak's wife is suspending her benefit to let it grow. When he collects his spousal benefit, it will be 50% of whatever amount that his wife expects to collect at that time i.e. the spousal benefit increases by the same proportion or effectively increased by 8% every year his wife suspending her benefit past her own FRA.
I thought that too initially--
But MathJak and other have said that the spousal benefit IF YOU WAIT UNTIL YOUR FRA to file for spousal benefit is fixed at 50% of the person's SS you are claiming on--period--
If you wait to your FRA, then it doesn't matter what that person is receiving (reduced or FRA amount or the increased amount for waiting past FRA)....
If you file before YOUR FRA and your spouse has also filed, then your spousal is reduced from whatever the spouse's FRA benefit would be--NOT what he/she would be eligible for at that time...
I think that is correct...
Of course unless you fall into the protected age groups going forward, no one can Restrict filing to only spousal benefits in future to let your personal SS benefit grown...
In future anyone younger than 62 (?) now who files will automatically file on his/her personal SS benefit and get any eligible spousal amount as a supplement to the personal...
But MathJak and other have said that the spousal benefit IF YOU WAIT UNTIL YOUR FRA to file for spousal benefit is fixed at 50% of the person's SS you are claiming on--period-- Yes, it is fixed at 50% of the amount AT THE TIME of claim.
If you wait to your FRA, then it doesn't matter what that person is receiving (reduced or FRA amount or the increased amount for waiting past FRA).... I am not sure what you mean in this statement.
If you file before YOUR FRA and your spouse has also filed, then your spousal is reduced from whatever the spouse's FRA benefit would be--NOT what he/she would be eligible for at that time...
I think that is correct... Yes, that is correct.
Of course unless you fall into the protected age groups going forward, no one can Restrict filing to only spousal benefits in future to let your personal SS benefit grown... I am certain that this is mathjak's situation.
In future anyone younger than 62 (?) now who files will automatically file on his/her personal SS benefit and get any eligible spousal amount as a supplement to the personal... True.
Below is what I think of an example of filing spousal benefits for the 'protected age' group (older than 62 and the main claimer can file and suspend). I will leave the COLA adjustments aside for simplicity.
Person A at 65 files and suspends her benefit currently at $1000. This amount is expected to grow 8% for each suspended year.
When A is 67, her spouse B turns 66 and can receive spousal benefit at 50% of A's benefit or $1080/2 = $540 or collect his own FRA benefit say at $1000. B can decide to collect spousal benefit now or later and let his own benefit grows until he is 70.
If B delays collecting his spousal benefit until 67, at that time, he will collect 50% of A's benefit (which had grown to $1164) or $583.
If B starts at 67, his benefit will stay at $583 until he starts collecting his own at 70.
When A turns 70, she starts collect her benefit at $1360 (8% grow for each delayed year) while B continues to collect his spousal at $583.
When B turns 70, he can start collecting his own deferred benefit of $1360/month instead of the spousal benefit of $583.
I'd appreciate if someone points out any errors or wrong assumptions in my examples above.
Belladl is correct. It never makes any sense to not collect Spousal (if you can delay your own benefit) at your FRA if your spouse is older than you. Never. Once your older spouse has past FRA, their FRA benefit is set in stone, regardless if they are working or not. Their own benefit will increase, but your spousal stays the same. Something is wrong with what they are telling you.
Below is what I think of an example of filing spousal benefits for the 'protected age' group (older than 62 and the main claimer can file and suspend). I will leave the COLA adjustments aside for simplicity.
Person A at 65 files and suspends her benefit currently at $1000. This amount is expected to grow 8% for each suspended year.
When A is 67, her spouse B turns 66 and can receive spousal benefit at 50% of A's benefit or $1080/2 = $540 or collect his own FRA benefit say at $1000. B can decide to collect spousal benefit now or later and let his own benefit grows until he is 70.
^^^ What you've described is the file-and-suspend option that will not be available after 5/01/2016.
After that date, spouse B cannot file for spousal while Person A's benefit is suspended. Being in 'protected age' group simply you can still do 'deeming' (filing restricted), it does not mean you can file and suspend after the cutoff date.
I believe she knows that, but it does not apply to Mathjaks situation. It did eliminate my plan to F&S when I reached FRA in 2024. Now I will likely collect at FRA.
^^^ What you've described is the file-and-suspend option that will not be available after 5/01/2016.
After that date, spouse B cannot file for spousal while Person A's benefit is suspended. Being in 'protected age' group simply you can still do 'deeming' (filing restricted), it does not mean you can file and suspend after the cutoff date.
The scenario I described was for mathjak's situation with his wife who either plans to do it before the cut off date or has already done it.
The scenario I described was for mathjak's situation with his wife who either plans to do it before the cut off date or has already done it.
?? Yes, she can suspend but mathjak won't turn FRA before the cutoff date of 5/01/16 so he can't file for his wife's suspended benefits as you posted (unless I'm misread it).
As he said in his post, she'll have to resume her benefits in order for him to file spousal.
My wife is already collecting an early benefit which she will stop in august. She can't do a file and suspend anymore . She can only do a start and stop so restricted application is our only option.
That is why file and suspend was not used.
Once you take your ss early you can only stop and restart it . You lose the abilty to file and suspend.
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