"My wife turns 62 in February of this year, 2019."
Tom turns 70 in July.
"I have been drawing Social Security since 62, as it was necessary.
We were wiped out in the housing crash of 2017-ish.
I think it means 2007-ish. Yeah.
"So no savings or other income.
My wife could take her Social Security at about $700 per month, or I hear she could
apply for half my $1900 that I receive.
Question: Do I lose half my Social Security if she claims half?
Given the scenario above should she take her SSI? Thank you."
OK. Tom, a few different things.
Let me answer I guess the biggest one that he's afraid of, is that Tom's collecting
$2,000 a month.
So there's something that's called a spousal benefit.
The spousal benefit is half of Tom's benefit - or hers, whichever is higher.
Since her benefit is $700 a month, his is $2,000 a month, her spousal benefit is going
to be $1,000 a month.
So he's asking the question, if she takes the spousal benefit, is that going to
reduce his benefit?
The answer is no.
Yeah. Absolutely not.
Yeah, so Tom don't worry about that, if she claims half yours, it's not like you lose
half and she takes half.
You'd just be stuck in the same position so no one would ever do that, you would just
claim your own benefit.
So no, you're good there.
Nothing's going to happen to your overall benefit.
But she is 62.
So if she takes her benefit at 62, she is not going to receive half of the benefit.
She's going to receive a lower amount, because she's taking it at 62.
She has to wait to her full retirement age to get half of the benefit.
So if she takes it at 62, how it basically works is that she'll take her benefit, which
would be a reduced benefit.
If her benefit at 66, full retirement age, is $700, she would receive 75% of that.
And that would be roughly $600?
Yeah 5-something, call it $600, not quite as much.
So her benefit is $600 but the spousal benefit is $1,000, but not until she reaches age 66.
So you've got a problem here.
So it's looking at what happens with the spousal benefit? It's called "deemed."
So she might still get the spousal benefit because they're gonna do a calculation.
They're gonna take her benefit, they're gonna reduce it by 25% and say, "here's what
your benefit is."
Now if you look to claim the spousal benefit, they're going to shore up her benefit and
add a spousal benefit on top of it - but she's not going to get the full half of the benefit.
It's going to be reduced, because she's taking it at 62.
So in your example then...
It's going to be roughly probably 700 bucks. (laughs)
Well yeah but that's her benefit.
No I'm saying her benefit is going to be reduced, her benefit would be let's say $600.
Shore up her benefit of spousal, because she's not going to get 50% of it, it's going to
be 33% of it.
So you take 33% of $2,000.
I'm just doing the math in my head, it's probably- it's close.
So her benefit is roughly going to be $700.
It doesn't make any sense to take it early with this math - unless you need the money.
Yes. Right.
So the simple answer is yes, you can take it, but you'll have a reduced benefit for life.
Yes. So she can take the benefit.
That's not going to affect yours, Tom, whatsoever.
So if you need the money, take it, just know that it's not going to be half of your benefit.
She needs to wait to her full retirement age to get a half your benefit.
If she takes it at 62, it's going to be a reduced benefit, and if you're fine with that
reduction of benefit and that helps pay the bills, I guess our advice is to do that.