I am 64 this October. I earn 55000 a year. I have a widow's benefit of 1100 available. My plan is to draw the widows benefit at 66 to avoid the earnings penalty and continue working. Is this the correct timing to maximize my income. Thank you.

Hi,

I'm assuming that your own Social Security retirement benefit rate is higher than your widow's rate, and that the rest of your plan is to switch to your own benefits at age 70. In that case, the strategy you have in mind is probably your best strategy, assuming that your earnings continue to be high enough to preclude collecting any widow's benefits prior to age 66. The only factors that might alter your plan is a) if your earnings decline before you reach age 66, or b) if Social Security raises the earnings test exempt amount in future years by enough to allow you to be able to collect some widow's benefits prior to age 66.

The Social Security earnings test exempt amount in 2020 is $18,240, and if your monthly widow's rate is $1100 and you'll be earning $55,000 this year then you wouldn't be able to collect any widow's benefits in 2020. But, changes in either your earnings or the earnings test exempt amount in future years could alter your optional strategy. The bottom line is that if you'll be switching to a higher benefit rate on your own record at age 70, you'd want to start collecting your widow's benefits as soon as the Social Security earnings test would allow you to receive at least some widow's benefits.

Our software (https://maximizemysocialsecurity.com/purchase) could help sort all of this out for you so that you can make sure that you're able to choose the best strategy for maximizing your benefits.

Best, Jerry