Social Security Answers
Question 3. I'm older than my spouse, but my eventual Social Security retirement benefit will be lower than my spouse's (I didn't work as long, and I didn't earn as much money). At this point, we are both still working. If I retire first, will our family's eventual combined Social Security income be lower than it would have been if we both retired at the same time?
Answer. When the first spouse retires, his or her Social Security benefit will be calculated based only on his or her own work history. That benefit will become the couple's Primary Insurance Benefit.
When the second spouse retires, Social Security looks at the second spouse's work history. The second spouse's benefit will be based on the LARGER of:
(1) half of the Primary Insurance Benefit, or
(2) the retirement benefit that the second spouse earned as a result of her own work history.If number 2 is LARGER, the second spouse's benefit will then become the couple's Primary Insurance Benefit and Social Security will re-examine the first spouse's work history and readjust his or her benefits to the maximum allowed by law.
Here are two simplified examples:
Example #1 - Both husband and wife worked: If one spouse earned a $1,500 monthly benefit, and the second spouse earned a $1,200 monthly benefit because of his/her own work history, the couple's total Social Security benefit would be $2,700 ($1,500 + $1,200) each month.
Example #2 - Both husband and wife worked: If one spouse has earned a $1,500 monthly benefit, but the second spouse earned only a $200 monthly benefit because of his/her own work history, the second spouse's benefit would be disregarded. Instead, the second spouse would be entitled to a Social Security Spouse Benefit equal to 1/2 of the first spouse's benefit. Therefore, this couple's total Social Security benefit would be $2,250 ($1,500 + $750) each month.
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