Larry,

I am 68 and started collecting SS at age 64. My wife collects spousal benefits (50 percent of mine) and wants to wait 3 more years to collect her own at age 70. Although we are fine from a financial standpoint in terms of retirement savings and her teacher pension we disagree on whether her delaying until age 70 makes sense. If Congress does nothing to strengthen SS finances, I am concerned about the projected 23 percent reduction in benefits by 2033. What do you feel is the better strategy for her / us? Wait 3 years or for her to collect now at age 67?

Hi,

That depends in large part on your wife's current spousal rate vs. her potential retirement rate on her own record. However, assuming that her own retirement rate will be higher than her spousal rate if she waits until age 70 to start drawing, then it would very likely be best for her to wait until then to switch to her own record as long as she's in reasonably good health.

I can't predict the future, but I don't believe that your wife should change her filing decisions based on concerns about the future viability of Social Security. Social Security has been around for roughly 83 years now, and Congress has always seen fit to continue funding it.

Your wife may want to consider using our maximization software to help her decide what to do. The software will allow her to compare and gauge the long term effects of her various options.

Best, Jerry