Dear Larry,

My spouse filed and suspended last year when I turned 66. I filed and I am receiving a spousal benefit. We have used your software and made certain assumptions given our health conditions. Based on these assumptions, the software recommended that my spouse begin drawing her benefit in January of next year. My spouse will be 69 in March. Taking into account the “hold harmless” provisions of Medicare and the likely small cost of living increase for SS, would my spouse be better off beginning drawing in December or earlier this year so she would be held harmless on any Medicare premium increase.

Hi,

I believe your spouse needs to collect starting as of November to be temporarily held harmless with respect to Medicare Part B premium increases. I say temporarily because my understanding is that future Social Security Cost of Living Increases will be limited for those held harmless in the past until their Medicare Part B premium is at the level they'd pay had they never been held harmless.

Also, if you take your retirement benefit before reaching age 70 you need to wait a whole year to collect your Delayed Retirement Credits for the months between when you turned 68 and the month you start your retirement benefit. So that too is a nasty cost associated with filing a minute before reaching age 70.

So be very careful on this one. Our software can show the gains from waiting till exactly 70, but it does not yet incorporate the cost of not being held harmless. That you'll need to estimate on your own.

My best, Larry