Applying for Social Security: timing of spousal application

Factual Questions
1

In a nutshell: can my spouse apply for benefits under my earnings:

A) as soon as my application has been received by SSA (she will be given the option of taking under my earnings when she applies online); or

B) only after I start actually receiving benefits will she have the option of taking under my earnings?

I learned directly from SSA today that I must apply first, but she did not say (and I didn’t think to ask at that point, because this was already new information for me) how long the Mrs. has to wait to apply, only that, during the phone appointment that was set up for next month, we “can’t both apply at the same time”.

Details: I plan on retiring effective July 1. Both I and the Mrs. are over age 65. She will do better taking ~45% of my benefit than taking under her own earnings (reduced percentage because my FRA isn’t for another year).

At this point, all decisions have been made, and it’s down to the timing. This spousal application question is really the last major unknown.

I was able today to get an appointment with the local office, but not for another month (May 16), which with a July 1 intended retirement date is really pushing things very close, as I understand there may be 6-10 weeks after application before the first payment is made.

Unless [B] is the answer to the question, my plan is now to:

  1. I will apply online ASAP
  2. Once my application is “accepted” (immediately on finishing? Next day or two?), Mrs. Raza will go online and apply, and we assume the option of claiming under spouse’s earnings will be available to her.

Doper experiences or educated guesses are appreciated. It is obviously critical that we get this right, as trying to fix things later isn’t certain or easy.

I have searched broadly for this specific question, but I don’t find any answers specifically addressing the precise timing aspect, other than I have to apply first.

2

I did the hack where I got benefits from my wife’s SS and waited until 70 to take mine which she is now under. We applied at the same time both times, the first in person (pre-Covid) and the second over the phone. The wait for the phone appointment is not much shorter than for an in-person appointment.
So, there is no real need to wait for her to apply. The documentation says you need to have your marriage license available, which we did, but the gummint knew we were married so we never had to show it.
In all the times we’ve talked to SS people they have been friendly and knowledgeable. And we were doing something weird, unlike you.
Tiny nitpick - she gets her benefits first, and then a supplement to get up to the 45%.
As for getting the money, we did it far enough in advance the first time that there was no delay. When we switched I screwed up. When I set up my profile it was with a checking account we later closed. When I got money on my wife’s benefits, it was from the new account, but when I switched to mine they used the old account and it bounced. I fixed it on line, but it said it would take a couple of months. I decided to call - I was on hold for over an hour, but when I got someone they fixed it immediately. So that may be an option for you if you need to talk to someone.

3

The situation @Voyager describes was stopped almost 7 years ago and will not be available to you or me. More’s the pity as it was a license to steal.

Under current statute, she can apply for benefits for her whenever she wants. Which amounts to applying for her benefits under her account and also her benefits under your account, whichever is greater. She cannot apply for one or the other; it’s always both.

Whether or not she applies for benefits has zero effect on your application for your benefit for your/her account. You have no need to apply for your benefits for her to be able to apply for benefits under your account. You application and her application are unrelated events.

Here are some somewhat telegraphic notes of mine on topic:

General rule is dependent spouses (or divorced ex-dependent spouses) are entitled to 50% of the worker’s FRA SS benefit. So early claiming by worker does NOT decrease dependent benefit. Late claiming by worker does not increase dependent benefit.

But… early claiming by dependent (vs own FRA not worker’s) DOES decrease dependent benefit. Late claiming by dependent does NOT increase dependent benefit. For retirees post ~2016, the “deeming” rule applies: claiming spousal benefit at FRA also claims own benefit at FRA. So assuming longevity and generally desiring as much delay for 8% growth as possible:

  1. If FRA spousal benefit > age 70 own benefit, claim spousal at FRA; no upside to waiting.
  2. If FRA spousal benefit < FRA own benefit, spousal is and always will be immaterial, so decision to claim now or wait is based solely on own benefit.
  3. Else: is usual time value of money vs greater outyear benefit tradeoff.

2:1 reduction in benefits while claiming and working below FRA does apply.

4

I missed that one also. It was that the higher earner could take benefits and suspend, and have the spouse take higher spousal benefits as if the higher earning spouse were taking benefits. Since the higher earning spouse was officially not taking benefits, they would keep accruing until age 70. This was documented in “Get What’s Yours” by Kotlikoff, Moeller and Solman. My edition is out of date since Congress removed the loophole, and I haven’t seen a newer version.
I never started and then suspended by benefits, but was able to take spousal benefits without affecting my personal benefits. Anyone hitting Full Retirement Age now is too young to take advantage of this.

My point in bringing it up was that it made us spend a lot of time with our representative to make sure it got done right. (No way of doing it on line.) They knew all about it and it worked perfectly.

5

Ye, exactly.

Anyone approaching retirement should absolutely positively get the current version of that book from the library, Amazon, or the publisher, and read and heed every last word in there. The difference between doing your SS claiming the smart or stupid way can easily be $100K in more (yaay!), or less (booooo!) free money!

But it must be the most current version; this stuff changes quickly and randomly.

6

I understand each person grabbing what they can get, but as someone who is concerned about SS funding (and Congressional inaction) the previous system impressed me as inexplicable and indefensible. Tho I will not be able to take advantage I am VERY glad that option was closed.

7

Congress closed it as soon as it became popular, and I’m fine with that - even for the one I couldn’t use. But this was one of the few instances of a loophole that benefited the working stiff, not the rich.

8

That was my impression before yesterday, but I was told over the phone by the SSA rep that “you [I] would need to apply first” if my wife was going to claim under my benefits.

A somewhat not-super-emphatic statement on the SSA site [bolding mine]:
“When a worker files for retirement benefits, the worker’s spouse may be eligible for a benefit based on the worker’s earnings” from Online Services | SSA which implies the worker (me) would apply first.

From AARP: Online Services | SSA which obviously is a secondary source they write [bolding mine]:

And on this page: Can My Spouse Collect Social Security Before I Retire? they write, in answer to the question “Can my spouse collect Social Security on my record before I retire”:

All of this generated some confusion and concern on my part. Regardless, though, I should and will forge ahead filing for MY benefits ASAP, in order to get them processed in time for a July effective date (though my first payment may not actually be until August).

9

Hmm. I guess I need to update my SSA guidebook and read it carefully again.

10

This link is to SSA (the same as the one above) not AARP. Could you please repost the AARP one? Thanks.

11

I’m a little confused. I retired in 2021 at my FRA (66 and 2 months) and am receiving benefits. My wife is 62 and still working. Am I understanding folks here to say that she could apply now for benefits from my account?

FYI, she is earning much more than I did in my last few years of working and won’t reach her FRA until 2027.

12

Sorry about that; here is the AARP link:

13

I just finished MY SS application online. I must say, I’m pretty happy with the experience.

The site was decently designed, with separate “pages” that you are walked through, somewhat like a tax program interview.

And I was especially pleased that it specifically asked when I want my benefits to begin, which had been a concern because at the very beginning they make a point that they “may use {today} as the date of your application”, and I had to answer some questions with “still working”, but finally it asked for the desired date, and I’m happy it is explicit (though I did repeat that in my comments at the end, too).

It also asked questions specifically designed to determine what future months of THIS year you expected to earn income. For someone like me for whom this is a transition year, it made it clear when I expect my earned income to end.

Note: if you had a previous marriage of over 10 years, be prepared for some questions on your ex/exes’ info (“I don’t know” is also a choice given for some questions).

14

If she is over 62 yes she can. But for every dollar over the amount of her benefit amount that she earns there will be a deduction of $.50 from her benefit. If her benefit is $1,500 and she is earning $2,000 then she will have $250 deducted from her benefit. But is she is earning $5,000 then she will get no benefit. If I remember right that is how it works. Once she reaches her FRA there is no deduction.