Does ‘wait and take’ affect the Social Security spousal benefit?

Doug emailed: My question is about the “wait and take” strategy which delays taking the higher wage earner’s Social Security benefit until 66 (or later), but taking the lower wage earner’s benefit at age 62. Does taking the lower wage earner’s benefit at 62 affect the amount of the spousal benefit when the lower wage earner turns 66? My wife turns 62 this year and I will be 66 in 5 years. It would be great to have her SS benefit for the next five years and then take my SS benefit and her full spousal benefit.  

OK, here’s the deal. If your wife takes her own benefit at age 62, she would not be eligible to receive a full 50% spousal benefit. Spousal benefits can be a maximum of 50% of the higher wage earner’s full retirement age (FRA) benefit – only if the spouse waits until her full retirement age (66 or 67 depending on your year of birth) to collect Social Security benefits. However, someone who collects his/her own benefit at 62 and then switches to spousal benefits at FRA won’t get the full 50%. There’s a permanent reduction is spousal benefits since she filed for her own benefits early at 62, says Annrose Isaac, a CPA and CFP at Modera Wealth Management in Westwood, N.J.