Based on what I’ve learned from your book, “Get What’s Yours, The Revised Secrets to Maxing out Your Social Security”, I believe I’ve developed a plan for myself and my wife to follow that will enable us to achieve what your book’s title suggests. I would appreciate your review of this four step plan to provide advice in three areas:
1. Is the plan doable? Do current Social Security rules allow for each of the four steps?
2. Are you aware of any potential “Gotchas” or other issues related to this plan? I’m concerned about Gotcha #2 from your book that says “Once You File for Your Retirement Benefit, You Can Never Take an Auxiliary Benefit by Itself”. I’m not sure what is meant by an “auxiliary benefit by itself”, or if that affects our plan which calls for each of us switching between personal benefits and spousal benefits over the next 2-3 years.
3. Based on the assumptions that I’ve provided, are the spousal benefit estimates accurate?

OUR PROFILE / ASSUMPTIONS / GOALS
• Married 20+ years, no previous marriages for either of us
• Each of us is currently 67, and over our respective age 66 FRAs.
• Each of turned 62 before January 1, 2016, so we are eligible to file a restricted application (restricted to spousal
benefits)
• My monthly Social Security benefit is much higher than my wife’s. Rounded benefit estimates from our Social Security statements are:
o Husband - $2600 at FRA of 66, $3,600 at age 70
o Wife - $500 at FRA age of 66 (for simplicities’ sake I’m using the same $500 estimate for age 67, as well as age 66, even though it will grow slightly).
• I plan to delay applying for my personal retirement benefit until age 70 to maximize age 70+ income for me, and to provide a larger survivor benefit for my wife if I predecease her. And beyond the longevity / financial analysis, the more important consideration may simply be the “peace of mind” of having a higher “guaranteed” income stream in our later years. The plan outlined below is designed to accomplish this higher 70+ income, while at the same time getting some Social Security benefits through my wife’s work record in the 2-3 years leading up to me turning 70.

OUR FOUR STEP PLAN - DOES IT MAKE SENSE FOR US?
1. Wife applies for Social Security based on her work record and receives about $500 per month (Actually she already applied a week ago. She requested benefits six months retroactive, which is as far back as she can go, and even with the six-month retro, she is still over her FRA of 66)
2. Following my wife’s application for her benefits, I plan to file a restricted application for spousal benefits, making it clear in answers to questions on the application and through written statements in the comments section, that my application is restricted to spousal benefits. (I am not applying for my retirement benefits on my own record, because I want to earn delayed retirement credits.) I should get one-half of my wife’s benefit at her age 66 FRA (about $500) or $250. This should result in a combined Social Security income for the two of us of $750 per month for the 2-3 year period leading up to me turning 70.
3. At age 70 I apply for Social Security benefits on my own work record and receive an age 70 monthly benefit of $3,600
4. Following my age 70 application for my benefits, my wife applies for spousal benefits based on my work record. This should result in a total monthly amount to her of one-half of my $2,600 age 66 FRA amount, or $1300. (I believe that Social Security will say that the $1300 is $500 from her personal work record and $800 from my work record.) This should result in combined Social Security income for the two of us after I turn 70 of $4,900 per month ($3,600 + $1300).

Hi,

Yes, your plan sounds doable and is probably your best long term plan to maximize your benefits. Still, though, it would be safest to use our software (https://maximizemysocialsecurity.com/purchase) to make sure you identify the precise filing strategy that best fits your individual set of circumstances. Ideally, it sounds like your wife should have claimed her benefits at her full retirement age (FRA) of 66 and you should have claimed spousal benefits effective with the later of the month you reached your FRA of 66 or when your wife claimed her benefits. Since you and your wife are both age 67 now, though, claiming the maximum 6 months of retroactive benefits is probably the best you can do.

I don't see any 'gotchas' involved with your plan. When you eventually file for your own benefits at age 70 and your wife claims spousal benefits, her spousal rate will be calculated by subtracting her own retirement benefit rate, inclusive of any delayed retirement credits (DRC) that she receives as a result of claiming her benefits after FRA, from 50% of your primary insurance amount (PIA). A person's PIA is equal to the amount they'd receive if they start drawing their Social Security retirement benefit at FRA. The result will be that your wife will then be due a combination of her own retirement benefit rate plus a partial, or excess, spousal rate that will add up to 50% of your PIA. That's what Larry's book is referring to when it states that you can't receive an auxiliary (e.g. spousal) benefit by itself once you've filed for your own Social Security retirement benefits.

Best, Jerry