Social Security Matters by AMAC’s Certified Social Security Advisor C.J. Miles Association of Mature American Citizens:

QUESTION: I won’t be full retirement age for another two years, and as much as I’d like to wait to get Social Security, I just can’t afford to.  I know I’m going to get a reduced benefit for not waiting.  But what will happen when I reach 66 after taking a reduced benefit?  Will it increase to the full amount?

ANSWER: I really wish I could say yes, but unfortunately, no.  That percentage reduction is forever.  In addition to cost of living (COLA) increases, there are two other things that could increase your benefit, depending on your situation – a spousal benefit and a voluntary suspension.

In terms of a spousal benefit, if you take a reduction on your own benefit now and at full retirement age (FRA) your spousal benefit is larger, your benefit will increase to cover some of the difference.  For example, let’s say your husband’s FRA benefit is $2,000 and your FRA benefit is $900.  This would mean that your current, age 64 benefit is $780.  Once you turn 66, your benefit would increase to $880.  However, this will not work for everyone because it only occurs if your spousal benefit is higher than your own FRA benefit.

In terms of voluntary suspension, you mentioned that you will have to take a reduced benefit now because of your financial circumstances.  If for some reason your financial circumstances change, once you are FRA (66), you have the option of voluntary suspension.  What this will do is stop your benefits and they will earn delayed retirement credits at a rate of 8% per year (pro-rated for a partial year) up to the age of 70.  For example, let’s again use the amounts above where your current, age 64 benefit is $780.  (For simplicity reasons, I will leave out the effects of COLA).  Then you can voluntarily suspend this benefit at age 66 and reinstate it age 70, which will increase your benefit to $1,029/month ($780 x 132%).  You can voluntarily suspend your benefit at any time between age 66 and 70.

Aside from these two circumstances and COLA, your benefit will generally not increase.  Once you take the reduced benefit at an early age, it stays reduced.  Any further calculations, such as delayed retirement credits due to voluntary suspension, will be based on that reduced amount.

QUESTION: I know the major advice is to take your Social Security at age 70, but my husband and I just can’t afford to do that.  So we’re trying to think of the best way to get our benefits with minimal impact.  When we look at the spousal calculation, though, we’re a little confused.  We were told I should get 50% of his benefit, but some of my friends have told me they get less than 50%.  I asked them if they were impacted by earnings or something, and they said no.  So what am I misunderstanding?  What exactly would I be getting 50% of?  His current benefit?  Future benefit?  If it helps, I’m 64 and he’s 65.  According to the Social Security office, his full retirement benefit is $1,900, but will be reduced to $1,773 because he will be taking it one year early.  So I’m assuming I should get $886.50, right?

ANSWER: I think I see where there is a misunderstanding.  You are correct that spouses are supposed to get 50%.  However, that 50% is based on the other spouse’s full retirement benefit, which in your case is your husband’s full retirement benefit of $1,900.  This makes your maximum spousal benefit $950/month.  It is considered a maximum because you would only get that $950 if you waited until you are full retirement age to start collecting it (the age your husband starts collecting his benefit does not affect your spousal benefit).  Therefore, if you take the spousal benefit at age 64, you will incur your own benefit reduction on top of the 50% for applying two years early, which would reduce your spousal benefit from $950/month to $792/month.  This is probably why your friends are also getting less than 50% - they might have taken the spousal benefit younger than full retirement age.

Keep in mind that even though the timing of your husband’s filing doesot affect your current spousal benefit, it will affect your widow’s benefit.  Surviving spouse benefits are always based on the full benefit of the spouse who passed away at the time he/she passed away.  Therefore, if he takes his benefit early, that will reduce your widow’s benefit if/when you ever need it.

To ask a question about Social Security contact AMAC’s C.J. Miles at This email address is being protected from spambots. You need JavaScript enabled to view it..