When a 62-year-old woman applied for social security, she hoped to get half of her husband $ 3,200 in a monthly payout-$ 1600. But to its surprise, the Social Security Administration approved only $ 1,000.
In search of answers, she appealed to R/Socialsecurity Subreddit. In her report, she explained that her husband, who was now 76, was waiting for up to 70 years to claim his benefits, a strategy that earned him retired credits and increased his monthly check. Still, she believed she should receive half of its amount.
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One Reddit user answered with a detailed explanation – and mathematics – explained where its expectations had missed the sign.
The usual misconception is that the spouse automatically is entitled to 50% of their partner’s social security benefits. In reality, spouses’ benefits are calculated in the light of what is called the original insurance amount or PIA – the amount your spouse would have received at all age of retirement age, not the actual benefits they receive if they delay the requirements.
In this case, the woman’s husband waited up to the age of 70 to claim benefits by increasing the benefit through the delayed pension credits. However, spouses’ benefits do not take into account those credits. They are calculated using his PIA – the benefits he would have received at the age of 66.
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One Reddit thread commentator clearly outlined it, assuming that the benefit of a man is the amount before Medicare deductions and the dollar rounding:
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Her husband’s current benefit is $ 3,212.
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This amount includes late pension credits – more than 32% more than Jo PIA.
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This means that his PIA is closer to $ 2,433.
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Half of this PIA is $ 1,216.50 – the biggest benefit of the spouses she could receive if she waited until her own retirement age.
But she didn’t wait. She applied for benefits at the age of 62, which led to a permanent early retirement decrease in about 30%.
Thus, her spouses’ benefit would be reduced to about $ 851. But here’s the catch: she already classified $ 1,000 according to her income record.