Hi Larry,

I retired from a Job in Aerospace at age 62 and my wife and I have been getting by living on savings and my company pension (she will continue to receive the same amount after I am deceased). We will both turn 66 (FRA) before the end of the 2020. Her social security benefits would be minimal compared to 50% of my FRA benefits. Given that her spousal benefits do not increase if I opted for Delayed Retirement Credits, it seems that the 8% annual increase is not worth the wait. I have looked at various breakeven calculations and it seems that the breakeven point is way longer (close to 20 years or more) when you factor in both social security payments starting at age 66. Based on my calculations, even if I waited 6 months and filed at 66 ½, we would have to be over 90 years old before we came out ahead. Is that correct?

Hi,

If you're just comparing the actual amount of benefits received, I don't think that it would be possible for your breakeven point to be as late as when you're in your 90s. In any case, though, breakeven analysis should not be the only factor used in your decision making.

For example, your wife's unreduced benefit rate as a widow in the event that you die before her would be equal to the higher of either her benefit rate or your benefit rate. So, if you start drawing your benefits at age 66 instead of age 70, for instance, your wife's monthly survivor rate would be 32% lower than it would be if you had waited until age 70 to start drawing your benefits. For some couples, that may be a bigger factor in their decision making than breakeven analysis.

One thing that I would say sounds certain in your case is that if your wife's own full retirement age (FRA) rate, or primary insurance amount (PIA), is minimal in comparison with 50% of your PIA, then she certainly wouldn't want to wait past her FRA to claim her own Social Security retirement benefits.

The decision on when to start drawing benefits is up to you and your wife, but you may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze your options so that you can make the best possible decision.

Best, Jerry