Hello Larry,

This is a question regarding child under-18 and child in-care spouse benefits.

I turned 65 this June, 2018. I work full-time and plan to work at least for another 3 years but possibly until 70. I have a 9 year old daughter and my wife of 10 years is quite a bit younger than I am at 37 years old. She is also working full-time but at considerably lower pay than mine. (On a related note, she is also a green-card holder, not a full citizen. Is that an issue with SS benefits?)

I only recently found out about the under-18 child benefit for my daughter and the potential child in-care benefit for my wife.

I just started reading your book and based on the file and suspend strategy, I should have filed at age 62 to get the child benefits and then do a suspend at my FRA of 66. Now that file and suspend is not an option, should I still file for my benefits next year (my FRA year) in order to get the under 18 benefit for my daughter? Is my wife also able to get the child in-care benefit as well? Or would it be best to wait until I turn 70 to maximize my benefit even if I have to forego the child benefits for another 4 years?

Thanks so much for your advise.
Sincerely,
Art

Hi Art,

Just to clarify, file and suspend is still an option, but it probably wouldn't be a good option for you because your wife and child couldn't receive benefits on your record if your benefits are in suspense. And, your wife's citizenship wouldn't preclude her from receiving benefits as long as she's legally residing in the U.S.

Your best strategy depends partly on the amounts that you and your wife are earning, but also on your personal preferences. If you choose to start your benefits at your full retirement age (FRA) or earlier, you and your wife and daughter would obviously start getting benefits sooner than if you waited until age 70. But, if you waited until age 70 to start drawing benefits your benefit rate would be 32% higher than your full retirement age rate (PIA, or primary insurance amount). And, that higher rate could also be used to calculate your wife's widow's benefit rate if you die before her.

The Social Security earnings test could limit the amount of benefits that you and your family could be paid if you file prior to FRA (https://www.ssa.gov/planners/retire/whileworking.html). And even after you reach FRA, the earnings test would apply to your wife's child in care benefits if she's working and earning more than the earnings test exempt amount, which is set at $17040 for 2018.

It sounds like you should strongly consider using our maximization software to sort all of this out for you. The software will allow you to compare your various options so that you can determine which option would likely work out best for you and your family in the long run.

Best, Jerry