Mr. Kotlikoff, I was married for more than 10 years, my ex-spouse passed away last year at age 64. I will be 63 this year. I have visited the social security office a few times to ask questions. I was given a printout last December showing the deceased ex-spouse benefit I would receive (shows how much it would go up each month until I turn 66). I would get from his benefit, more than double what I would receive on my own work record. I am thinking of retiring later this summer, 2016. The printout shows I would receive about $280 more per month if I waited to retire until I am 65, so I am trying to make the best decision for what I want in the next years of my life. My current income from work is actually less than what I would receive if I apply for deceased spouse benefits now, (which includes a pension I am receiving). I read your articles, I bought your first Get What's Yours book, I read the social security website. If there is anything I should consider that I've not included, please advise.

Thank you,

Catherine

Hi Catherine,

If your ex-husband didn't file for his Social Security benefits prior to his death, the optimal time to apply for survivor benefits on his record is likely to be when you turn age 66. On the other hand, if he did file for benefits before he died, it may be best for you to apply before then. This is due to a complicated formula called RIB-LIM that Social Security (SSA) uses to calculate some survivor benefits when the deceased took reduced benefits.

Hopefully, your ex did not file for reduced benefits, which would seem to be the case since SSA gave you a printout indicating that your benefit amount would continue to increase if you wait until age 66. It wouldn't hurt to double check that by visiting them or calling 1-800-772-1213.

Whether or not your ex filed for benefits, anything that you can draw on your own account before filing on his record is an added bonus. Depending on how much you are earning, it may be best for you to apply on your own account as soon as possible. This is almost certainly the case if you are earning less than $15,720 per year, or even if you are earning somewhat more than that. Any reduction for age that applies on your own account will not carry over to your survivor benefit when you apply on your ex-husband's record.

Of course, all of the above assumes that you are not re-married, or that you re-married after turning age 60. And, I'm assuming that the pension you are receiving is not based on government work that was exempt from Social Security taxes. Furthermore, I'm basing my answer on your description of the relative benefit amounts payable on both accounts. For some people in your situation, it is more optimal to file for survivor benefits first, then switch to their own accounts at age 70.

SSA should be able to explain your options to you, but the optimal choice may still not be readily apparent. If you haven't already done so, you may wish to consider running the maximization software on this website.

Best, Jerry