Is My Wife Leaving Money on the Table When I Start My Railroad Retirement?

Welcome to another edition of the Highball Advisors Railroad Retirement Mailbag! I’m John McNamara with Highball Advisors, and today’s question comes from George T. He writes, “I’m retired with over 30 years of railroading. My Tier 1 is $2,990 a month. My wife is retired as well and receives $1,400 in Social Security benefits paid by the Railroad Retirement Board. Will her Social Security benefit change since my Tier 1 won’t be reduced? Any help would be greatly appreciated.”

First off, George, congratulations on 30 years of railroading—what an incredible achievement! To answer your question: Your wife will still receive her Social Security benefits, but her Railroad Retirement benefits will change. Specifically, she’ll get a spousal annuity, which includes your Tier 1 and 45% of your Tier 2. This means her Social Security benefit will be replaced by the spousal benefit from Railroad Retirement.

For more details, check out my video, "When Does My Spouse’s Annuity from Railroad Retirement Stop?" It will give you more insight into your specific situation.

I hope this helps, George! Feel free to reach out with any other questions, and I’ll be happy to create another video. Until next time, everyone, stay safe, stay on track, and take care. So long!

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