Both spouses taking Social Security at 62

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renter
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Joined: Sat Aug 23, 2008 2:14 pm

Both spouses taking Social Security at 62

Post by renter »

If we assume two spouses are same age;

Spouse A worked many years in US, but Spouse B did not work in the US at all, nor pay into Social Security;

Social Security website says Spouse A's payout would be $2000 per month if Spouse A claims at 62;

If Spouse A claims at 62, could Spouse B also claim at 62 (same year), and if so, how much could Spouse B receive? Under these assumptions, would it be 50% of Spouse A, i.e., $1,000?

Neither A nor B wishes to claim later than 62
Carl53
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Joined: Sun Mar 07, 2010 7:26 pm

Re: Both spouses taking Social Security at 62

Post by Carl53 »

Play around with https://opensocialsecurity.com/. Both will have substantial reductions in benefits, A to $16900 and B to $7850., from FRA levels of $24000 and $12000. Edit: I erroneously used the OPs numbers as if they were at FRA, not at 62.
Last edited by Carl53 on Sat Feb 10, 2024 6:22 am, edited 1 time in total.
Tom_T
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Re: Both spouses taking Social Security at 62

Post by Tom_T »

renter wrote: Fri Feb 09, 2024 12:08 am If we assume two spouses are same age;

Spouse A worked many years in US, but Spouse B did not work in the US at all, nor pay into Social Security;

Social Security website says Spouse A's payout would be $2000 per month if Spouse A claims at 62;

If Spouse A claims at 62, could Spouse B also claim at 62 (same year), and if so, how much could Spouse B receive? Under these assumptions, would it be 50% of Spouse A, i.e., $1,000?

Neither A nor B wishes to claim later than 62
At the bottom of the benefits page on the SS site, there's a link for "calculate a benefit for a current or former spouse." You enter their date of birth, and when they would claim the benefit. That should answer your question.

OpenSocialSecurity, as was mentioned, is always a good resource.
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Chip Munk
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Re: Both spouses taking Social Security at 62

Post by Chip Munk »

renter wrote: Fri Feb 09, 2024 12:08 am Social Security website says Spouse A's payout would be $2000 per month if Spouse A claims at 62;
The calculations for both benefits will be based on Spouse A's Primary Insurance Amount. If Spouse A would receive $2,000 per month at age 62, the PIA is somewhere around $2,800, maybe $2840 or so? It would be better to have the actual number to get more accurate results. Once you have the PIA, plug it into https://opensocialsecurity.com/ and run some potential claiming dates.
legalwriter1
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Re: Both spouses taking Social Security at 62

Post by legalwriter1 »

Spouse B would get around $975 per month at age 62. According to Social Security Administration, a spouse can choose to retire as early as age 62, but doing so will result in a benefit that is equal to 32.5 percent of the worker's primary insurance amount.

The PIA of the worker's primary insurance amount at age 67 is $3,000 if the worker's primary insurance amount is around $2,000 at age 62. Take 3,000 times 0.325 which equals $975 per month.

SSA dot gov quick calculator:

Date of birth: 01/15/1962
current earnings: $123,000
benefit in 2024 dollars
retirement month: 2/2029 (age 67 or PIA)
benefit: $3,035 per month

Date of birth: 01/15/1962
current earnings: $123,000
benefit in 2024 dollars
retirement month: 2/2024 (age 62)
benefit: $2,007 per month

Spouse B benefit at age 62
PIA of Spouse A: $3,035
Take 3,035 times 0.325 equals $986 per month

Of course, when to take Social Security is a very personal decision. As a general rule, it makes more sense for the higher earning spouse to delay Social Security until age 67 or even age 70 and the non-working spouse claims SS at age 62.

Using the same numbers, Spouse A would get 3,812 per month in 2024 dollars if Spouse A claims SS at age 70 and Spouse B would get $1,289 per month if Spouse B claims at age 62 based on Spouse A's earnings. After Spouse A dies, Spouse B would get $3,812 per month as surviving spouse.

If Spouse A claims at age 70, Spouse B would get $3,812 per month as surviving spouse.
If Spouse A claims at age 62, Spouse B would get $2,000 per month as surviving spouse.

The increased surviving spouse benefit is a big consideration.

I generally like the IRA or 401k bridge approach to Social Security and delaying Social Security. There are also some tax advantages with this approach if there are a lot of assets in tax deferred accounts like a 401k.
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tennisplyr
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Location: Sarasota, FL

Re: Both spouses taking Social Security at 62

Post by tennisplyr »

Both DW and I took SS at 62...never looked back
“Those who move forward with a happy spirit will find that things always work out.” -Retired 12 years 😀
Silk McCue
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Re: Both spouses taking Social Security at 62

Post by Silk McCue »

tennisplyr wrote: Sat Feb 10, 2024 5:11 pm Both DW and I took SS at 62...never looked back
Do you believe that everyone should do that or should it be based on the couples unique financial and personal circumstances? None of us should assume that what is right for us is right for others.

Cheers
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Watty
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Re: Both spouses taking Social Security at 62

Post by Watty »

Carl53 wrote: Fri Feb 09, 2024 4:29 am Play around with https://opensocialsecurity.com/
+1

Once you have its suggestion about when you should start SS at the bottom of the page it will have graphs and numbers that compare the optimal starting age to other ages. In my case it suggested that I start near 70 but that was calculated as only being 2% more than if I started at my full retirement age. There were other factors that were not in the model that were more important than that 2% so I started at my FRA.

An additional consideration is that before you are 65 you may be getting an Affordable Care Act subsidy for health insurance and starting Social Security could reduce the amount of the subsidy that you get.
Silk McCue
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Re: Both spouses taking Social Security at 62

Post by Silk McCue »

renter wrote: Fri Feb 09, 2024 12:08 am
Neither A nor B wishes to claim later than 62
It’s crucial for them to have a fully developed plan to take care of their lifelong financial needs which could be decades. The SS claiming decision cannot be made in a vacuum without jeopardizing their joint financial well being.

Cheers
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tennisplyr
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Location: Sarasota, FL

Re: Both spouses taking Social Security at 62

Post by tennisplyr »

Silk McCue wrote: Sat Feb 10, 2024 5:23 pm
tennisplyr wrote: Sat Feb 10, 2024 5:11 pm Both DW and I took SS at 62...never looked back
Do you believe that everyone should do that or should it be based on the couples unique financial and personal circumstances? None of us should assume that what is right for us is right for others.

Cheers
Of course everyone should do what's right for themselves!
“Those who move forward with a happy spirit will find that things always work out.” -Retired 12 years 😀
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