Dear Mr. Kotlikoff,

I subscribed to your SS maximizing website service several years ago, and had successfully persuaded my wife that I should wait until I turned 70 to take my Social Security benefit. I'm now going on 68 (January 10th, 2018), and Trish (my wife) is going to be 63 on January 16, 2018. I've also purchased and read both editions of the book you wrote with Philip Moeller and Paul Solman.

A recent remodel at our house, plus my declining consulting income convinced her we need for me to file for Social Security now. Trish works as a Vocational Rehabilitation Counselor and has a variable income based on billable hours. I have a telephone appointment tomorrow AM with an agent from our local SSA Field Office. A physical visit is a nightmare so we opted for the telephone appointment.

One thing I really wish either or both editions of the book addressed was what about people like me who tried to hold out for 70 years old, but are now up against intense familial social pressure to file for benefits halfway between age 66 and age 70. My Dad is from a long-lived line of people, my Mom (both are now deceased) somewhat less so. Through my consulting and a sporting goods manufacturing/retailing businesses we run, we've modestly increased our earnings bases. I totally get the filing postponement as old age insurance. I get it, I get it, and it's lonely out here in "get it land".

What would you recommend we beware of tomorrow morning, and where might some light emerge on when/how I should file? By the way, I've noticed that the only thing harder to kill than the "break-even" myth is Tweets from Donnie Drumpf.

Sincerely,

Doug

Hi Doug,

I guess the main thing that you need to decide is at what month to start drawing your benefits. You'll have the option of starting benefits up to 6 months retroactively, but that would come at the cost of a lower monthly benefit rate for the rest of your life, which could also carry over to the widow's rate that your wife could receive in the future should you die before her. Delayed retirement credits (DRC) increase your benefit rate by 2/3rds of 1% for each month that you defer taking benefits between full retirement age (FRA) and age 70, so accepting the 6 months of retroactive benefits will lower your ongoing monthly rate by 4%.

Also, if you draw benefits starting with any month in 2017 your benefit rate will initially only include the DRCs that you earned through December 2016. Your benefit rate would later be recalculated to give you the DRCs for any months of non-payment in 2017 effective with your payment for January 2018.

You may want to consider using the maximization software again to compare your options and determine the best overall filing strategy for you and your wife.

Best, Jerry