Hi Larry,
I am 70 and fortunate enough to have been able to wait and claim maximum delayed retirement credit. My spouse is 63 1/2 and does not have enough credit for any personal social security benefit. One of our main goals is to ensure maximize widow benefits by making sure she waits to her full retirement age (66yr 6mo) to claim, should I die before that milestone.
The dilemma is figuring out spousal benefits. The philosophical decision is: do we want to insure longevity, in which case we wait for her full retirement age for those benefits too, or do we take some benefits up front (a for sure dollar today is more valuable than a promised dollar tomorrow, especially given the current state of the economy and the society security program). The break even point for taking it now vs waiting to any point up to her full retirement age is around 82-83 give or take (my life expectancy). I know from your book you don’t like to view soc sec as an investment, but the my primary social security is maximized as will be her widow’s. My question is a technical one for which I’ve gotten 2 answers from.multiple society security experts: Does the claiming of spousal benefits prior to full retirement age (thereby decreasing the benefit below the maximum 50% of the primary worker’s PIA) also decrease the subsequent widow’s benefit, even if the spouse waits to full retirement age? The “best” answer I think I got is that if I were to die prior to her full retirement age and she we’re getting early spousal benefits, she should instruct society security NOT to start widow’s benefits, which apparently is the default. Then she should wait until her full retirement age to claim the widow’s benefits which would allow 100 % of my maximized benefit. We do not wish to jeopardize her maximum widow’s benefit. Clarity here would be most appreciated. And, does she only need to wait to her auxiliary retirement age (66y6mo) or her personal retirement age (66y10mo)?
Thanks
Rick

Hi Rick. Claiming spousal benefits prior to full retirement age (FRA) won't necessarily reduce your wife's widow's rate, but it would if you die prior to your wife's FRA for widow's benefits. If your wife was born in 1959, her FRA for widow's benefits would be age 66 & 6 months. Assuming that your wife is not insured for Social Security retirement benefits and is receiving spousal benefits prior to her FRA, her spousal benefits would automatically convert to reduced widow's benefits upon your death. The percentage reduction applied to her widow's rate would be calculated based on her age at the time of your death.

Your wife would not have the option to stop her spousal benefits in the event of your death and wait until her FRA to start her widow's benefits. Only people who are receiving both Social Security retirement AND spousal benefits have that option (https://secure.ssa.gov/apps10/poms.nsf/lnx/0300207005). However, your wife could potentially withdraw her spousal application and wait until her FRA to apply for widow's benefits. But, she'd then have to repay all of the spousal benefits she was paid in order to withdraw her claim.

It sounds like you and your wife may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options so that you can determine the best overall strategy for maximizing your benefits.

Best, Jerry