Social Security Spousal Benefits (Case of Bob and Jane)

Social Security Spousal Benefits care confusing.  In this video, we examine how Social Security Spousal benefits work and when you should apply for them.    First, spouses will receive the greater of their own Social Security benefit or 50% of their spouses, whichever is more.  However, did you know some divorcees can also receive spousal benefits on their ex???  Click here for this video:  We introduce our fictitious couple, Bob and Jane.  For simplicity, we have Jane not working, for an income, and Bob working full time. We show what Bob's AIME is, as well as his PIA.  And then we show what Jane's benefit will be based on Bob's PIA.  (See why it's so important to understand how AIME works?  Bob's AIME affects not just his benefit but also Janes!)   Here is the video on understanding AIME. https://youtu.be/hRuiUbXD6Rs The max spousal benefit Jane can receive is 50% of Bob's PIA.  Remember, it's 50% of his PIA, nothing else matters to Jane in regard to her spousal benefit.  However, if Jane takes her spousal benefit early, before her Full Retirement Age (FRA), she will have her spousal benefit reduced.  In this case, we have Jane retiring at 64 thus her benefit will be 41% of Bob's PIA.  So, Jane starts with a maximum of 50% of Bob's PIA and depending on when she claims, that 50% benefit can be reduced.   But remember, Jane's spousal benefit can NEVER be more than 50% of Bob's PIA!  So, it makes absolutely no sense at all for Jane to wait beyond her FRA to claim her Spousal benefit.  She gets no benefit in delaying her spousal benefit beyond FRA. You MUST remember that folks.  If you are the spouse and someone says you can get earnings credits for delaying taking your spousal benefits beyond your FRA, please run, don't walk, away from whoever is telling you this! (On a side note, for those of you born before Jan. 2, 1954, you are the last cohort that can file a restricted application and I have a video on that here.  What that means is you can file for your spousal benefits  and allow your own benefit to increase with delayed earnings credits.  Again watch my video to learn more.  Born Jan. 2 1954 or later? Sorry, this no longer applies for you.) It's critical to account for your Spousal Benefit in your retirement plan.  If you are not, you are overtaxing your investment portfolio in your analysis which may lead you to make an error in your decision making.