Question: My wife, age 57, is receiving $394 per month in disability. If I begin benefits at $1,187 per month at age 63-and-a-half, will my wife’s benefit increase? I would continue to work and make about $40,000 per year. Would I file and suspend? My dad died at 78 and I can’t see outliving him. My wife doesn’t think she will see real old age, but her mother is almost 90 so I don’t know. What should I do?
Answer: Your wife can’t file for a spousal benefit until she is 62. Ignoring any inflation adjustment and assuming she files for her spousal benefit before full retirement age, her total benefit will equal the $394 plus her excess spousal benefit reduced for the fact that she’s taking her spousal benefit early. Her excess spousal benefit will be calculated as half of your full retirement benefit less 100 percent of her disability benefit. Careful software can calculate the exact amount.
Now what would I advise? I recommend you not count on dying on time. There is no guarantee this will happen. If you live to 100, you’ll be cursing yourself for taking benefits before age 70. Plus, if your wife waits until her full retirement age to collect a spousal benefit, her total check will equal half of your full retirement benefit. In order for her to collect her spousal benefit at full retirement age, you may need to file for your retirement benefit and suspend its collection assuming you are older than she is and are still under 70 when your wife reaches full retirement age.
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