Today is 9-1-18. My 66th FRA birthday is in 3.5 months (12-16-18). My wife does not have/will never have enough work credits to draw a benefit on her own work record in the U.S. Her 67th birthday is 10-17-18. We have no children. My monthly benefit per SS at FRA is 2,750$/month. If I postpone filing until I'm 70, then between the two of us we are not collecting 2,750 + 50% of 2,750 for 4 years or about 198,000$ (ignoring both cola increases and inflation). After reading your book (thank you very much for the effort) several times and many sections more times than that, I realize a break even analysis shorts my future selves, however, for a simple comparison sake, while my benefit will grow due to DRCs, hers will never be more then 50% of my FRA amount. So this says for the both of us we will break even at ~87 years of age (later if you consider colas are greater than 0% each year). This also assumes no benefit reduction due to SS being broke and ignores her widowed benefit if I die earlier but then again it equally ignores that congress can change the rules at any time too and when doing so, they usually grandfather folks in. It does mean that living until 100 for the both of us will forgo increased total benefits from age 87 to 100 (158k$ total left on the table at 0% cola for each of the next 35 years, and 119k$ at 1% cola, and 58k$ difference at 2% cola every year for the next 35 years). We could wait until age 70 to file but with so many unknowns, I feel like filing now at my FRA is the best way to go (yes, even ignoring the age 87 to 100 benefit increase) but am concerned I'm missing something else.

1. This analysis assumes my wife cannot draw a spousal benefit on my work record unless I'm receiving benefits since file and suspend is not longer an option, is that right? This is a bit confusing since I think I'm reading an older version of your book.

2. Can you see any things I should be thinking of but I'm not?

Thanks. Malcolm

Hi Malcolm,

Yes, you are correct that your wife could not be paid spousal benefits until you start drawing your benefits.

The major downside of starting your benefits at full retirement age (FRA) vs. age 70 that you may not have considered is that if you die before your wife her widow's rate would be equal to the amount of your benefit at the time of your death. Therefore, if you start drawing your benefits at FRA, both your own monthly benefit rate and your wife's potential widow's rate will be 32% lower than they would be if you waited until age 70 to start drawing instead.

The decision on when to start drawing your benefits is solely up to you, but if you've read Larry's book you're aware that he recommends viewing Social Security as longevity insurance and discourages the use of break even analysis. Before making your decision, you may want to strongly consider using our maximization software to fully compare and analyze your various options.

Best, Jerry