Hi Larry:

I’m looking at when to take social security. I’m 61, retired, and had been planning to wait until my FRA (66 yrs, 10 mon) to file. But my older wife, also not working and who does not have enough credits for her own benefits, is already at her FRA (66 yrs) and could collect spousal benefits as soon as I file. Unlike myself, there is no incentive for her to wait as her spousal benefit won’t increase. If I file at 62, I will receive a reduced amount, but she will collect 50% of my FRA amount rather than my age 62 amount. It is tempting to file early as her spousal benefits would more than make up for my reduced amount - at least for many years. My calculations show that the breakeven age for waiting until my FRA would be at age 88 yrs for me at which time my wife would be age 93. We have enough savings to wait until my FRA, but it seems like a good bet to have extra money while we’re younger and in good health. What are your thoughts?

Thank you.

Hi,

We don't recommend using break-even analysis to make decisions on when to file for benefits. It's something to consider, but it's not the most important factor.

That said, it sounds like you have a good understanding of your options. Filing for your benefits early would allow your wife to start drawing spousal benefits sooner, and her spousal rate would not be reduced for age if she's already at least full retirement age (FRA). The downside of filing early is that you'd then be stuck with a reduced benefit rate for as long as you live. And, if you die prior to your wife, she would then receive a lower widow's benefit rate due to the fact that you started drawing your benefits early.

You don't mention whether or not you're working, so I don't know if the Social Security earnings test (https://www.ssa.gov/benefits/retirement/planner/whileworking.html) would factor into your decision making. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits.

Best, Jerry