Q & A
Can I switch from my own benefit to spousal benefits?
Complete Question: I’m 62 years old and I started collecting Social Security, which is $900 per month. My husband is 70. He started his benefits at full retirement age and at that time, his benefit was $2,500. After I filed and started getting payments, we realized that half of his benefit is a few hundred dollars per month more than my benefit. Now we wish that I filed for spousal benefits instead of my own. So can I switch to spousal or is it too late?
Answer: I have good news and I have bad news. I will start with the simple part of this, which is the good news. Although you cannot technically “switch” your benefit, you do have the option of withdrawing your application as long as you filed within the past year. I am assuming you did since you are only 62. When you withdraw an application, you pay back any money you have received so far, interest free, and it is as if you never filed at all. This would give you the chance to file a new application the way you want.
Now for the bad news…
In this situation, withdrawing your application so that you can essentially “switch” your benefit type will not do you any good. When you file your application with Social Security, provided you are eligible for both your own benefit and a spousal benefit, they will automatically pay you the higher benefit amount. If $900 is your own benefit amount, then that must have been higher than your potential spousal benefit. You mentioned that half of his benefit is a few hundred larger than your own; however, you are not taking into account the benefit reduction for your age. At 62 years old, the spousal benefit reduction AFTER cutting his amount in half is 30%. Therefore, your spousal benefit right now is equal to $875 ($2,500 x 50% = $1,250 x 70% = $875). Since your benefit of $900 is more than the spousal benefit of $875, the Social Security Administration paid you your benefit of $900/month.
So what happens now? One of two things:
1) You can still withdraw your application, repay benefits you have received so far, and apply again at a later date so that your reduction is not as much.
2) When you reach full retirement age (FRA) in four years, you will receive a small benefit increase because of the substantial difference in your benefit and your husband’s benefit. In your case, that benefit increase would be $50/month for a total of $950/month (not including COLA increases), which is calculated as follows:
$1,250 (1/2 of husband’s FRA benefit) less $1,200 (your FRA benefit) = $50. Whenever this adds up to anything over $0, it is added to the spouse’s benefit when the spouse reaches full retirement age. (NOTE: The $1,200 was estimated based on you receiving $900 at the age of 62).
So even though there is no “switching” like you were hoping, there are still options to consider if you are trying to get more than the $900/month.
I am 73 and did not take SS until I was 70. I will receive $2,198 less deductions in 2019. My wife is 63 (will be 64 in Janyary). She started receiving at age 62. She will receive $611 in 2019. I am also receiving a CSRS annunity. Will it be in to her benefit to file to receive half of my allotment? (i.e., 50% of my allotment)
David:
Under current Social Security filing rules, when your wife filed for benefits at age 62 she would have been awarded the higher of her own benefit or the spousal benefit associated with your benefit at the time of your full retirement age (age 66). The amount used to calculate spousal benefits doesn’t include delayed retirement credits you earned between age 66 and 70. Your full retirement age benefit may also have been reduced as a result of your CSRS annuity, depending on the years of work you may have had where you paid FICA tax, and as a result her spousal benefit could also have been reduced. Further, by starting benefits at age 62, her benefit amount was also reduced from what it would have been at her full retirement age (66 + a few months depending on her birth year).
If you still believe your wife’s benefit amount is understated, you might want to contact your local Social Security Administration office and ask them to verify their calculations.
Thank you for contacting us. If we can be of any further assistance, please give us a call at 888-750-2622. We’d be happy to review this with you further.
Gerry Hafer
AMAC Foundation, Inc.
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.
Both my wife and I are in our early 80’s and started collecting SS at age 62. I receive $380 and my wife receives $1476 per month(gross). Can I switch to to spousal benefits?
Robert:
Unfortunately, from the information you provided in your comment, we are unable to answer your question. It’s possible that your original benefit has been affected by the Windfall Elimination Provision, so without knowing your actual work history, it’s difficult to explain the differences. There may be other reasons for the difference, so we’ll need to discuss your situation in more detail. Please contact our Social Security Advisory service at 888-750-2622.
Thank you.
Gerry Hafer
AMAC Foundation, Inc.
CONFIDENTIALITY NOTICE: The contents of this message, including any attachments, are confidential and are intended solely for the use of the person or entity to whom the message was addressed. If you are not the intended recipient of this message, please be advised that any dissemination, distribution, forwarding, printing, copying, or use of the contents of this message, and any attached documentation, is strictly prohibited. If you received this message in error, please notify the sender. Please also permanently delete all copies of the original message and any attached documentation. The opinions and interpretations expressed in this message are the viewpoints of the message’s author, a trained advisor accredited under the National Social Security Advisors program of the National Social Security Association, LLC (NSSA). The author, the NSSA, and the AMAC Foundation are not affiliated with or endorsed by the United States Government, the Social Security Administration, or any other state government.