My husband turned 66 in November 2016 (he is grandparented in under the new law), and I am 63 (turned 62 in March 2016 - I am subject to deeming). Neither of us have filed for any Social Security benefits yet. My husband (the higher earner) wants to wait until age 70 to file, but is hoping to find a couple's claiming strategy that will 1) maximize our household's total lifetime benefits AND 2) bring in some kind of immediate auxiliary benefits to augment our extremely tight budget and tide us over until he claims at 70. I am the low earner and I am willing to do whatever Social Security strategy available to maximize our total benefits. One online calculator gave us the following 4-step strategy to follow:
1) I file for my earned retirement benefits immediately
2) My husband then immediately files for spousal benefits by doing a restricted application to exclude his earned retirement benefits
3) In November 2020, my husband turns 70 and files for his earned retirement benefits with DRC
4) The same month, I (at age 66) file for spousal benefits

I have two questions:
1) Does the above strategy look like the best claiming strategy foe us?
2) Will deeming rules allow me to do Step 1 (file for my own earned benefits) and then, a few years later, do Step 4 (switch over to spousal benefits based on my husband's earnings)? [Gotcha #2 on page 261 of "Get What's Yours" seems to indicate that the above strategy would not be allowed for me because I am subject to deeming.]

Thank you for your time and expertise!

Hi,

The strategy you outline is certainly one to be considered, but would leave you with a reduced monthly benefit rate for as long as both you and your husband are living. That's because you would keep drawing your reduced retirement benefit rate even if you later become eligible for additional spousal benefits on your husband's record. It may still be at least arguably a good option, though, since it would allow your husband to receive unreduced spousal benefits until he turns 70.

You should strongly consider using the maximization software available on this website in order to determine your best strategy. The software will allow you to run various what-if scenarios using variables that you enter such as inflation rates and your maximum ages of life, which will enable you to determine which strategy you feel is best based on your expectations for the future.

With regard to your question 2, you wouldn't be able to 'switch' to spousal benefits in the future. Instead, you may be able to receive an excess spousal benefit in addition to your own retirement benefit when your husband files for his benefits.

For example, say Jane has a full retirement age rate (PIA) of $800, but starts drawing at age 63 and receives a reduced retirement rate of $640. After Jane reaches full retirement age (FRA) her husband files for his benefits with a PIA of $2000. Jane's spousal benefit would be calculated by subtracting her PIA from 50% of her husband's PIA, which would be $200 in her case (i.e. $2000/2 - $800). This partial spousal benefit would then be added Jane's reduced retirement rate of $640 to make her combined monthly rate $840.

Best, Jerry