Hi Larry,
I've looked at all the retirement scenarios that I can think of to maximize my husband's and my social security benefits. We are both under the deadline for filing restrictive spousal benefits (DOB 5/1952 and 2/1953 respectively) and we also have similar FRA PIAs ($2,257 and $2,179 respectively). Although neither of us is working we are well enough off to hold on till our FRAs come around. If I suspend and file for restricted spousal benefits our combined annual benefit once I turn 70 will be almost $8,400 more than if we both just filed and collected normally. I also looked at the scenario if my husband suspended and then filed for restricted spousal benefits a year later upon my filing at my FRA. Although my calculations show this would result in a lower payment than if I suspended, I made some assumptions that could have a bearing on how we deal with other SS issues in the future.

The first is that the higher PIA, regardless of who files, is used to calculate the spousal benefit. Right?

The second is that either of us can suspend at age 67, 68 or 69 and file for spousal benefits, then start again at age 70, (provided we both waited until our FRA to initially file anything). Right?

The third is that the delayed benefit would accrue at 0.666% a month for the duration between suspending and refiling at age 70. (e.g. 40 months = ~127% of the FRA PIA). Right?

My gut feeling is that there is a pitfall somewhere in all this.

Thanks!

Hi,

The PIA used to calculate a spousal benefit is the worker's PIA. If your husband files for his benefits and you file for spousal benefits, his PIA would be used to calculate your spousal benefit. And vice versa. And, one of you must file for and start drawing your retirement benefits in order for the other to receive spousal benefits. You can no longer file for and suspend your own benefits in order to allow your spouse to receive spousal benefits (https://www.ssa.gov/planners/retire/suspendfaq.html).

You can't suspend your own retirement benefits and draw spousal benefits instead. What you can do is file a restricted application for spousal benefits only at full retirement age (FRA), but only if your spouse has filed for their benefits. As a result, only one member of a couple, not both, can file a restricted application for spousal benefits only.

You can receive delayed retirement credits (DRC) from FRA until age 70 whether you file for and suspend your benefits, or simply don't file for your benefits until age 70. In other words, you don't necessarily need to file for and suspend your benefits in order to receive DRCs, and in some cases it's disadvantageous to do so. DRCs accumulate at a rate of 2/3rds of 1% for each month that you choose not to receive your retirement benefits between FRA and age 70, which can result in a maximum increase of 32% (i.e. 48 months x 2/3rds of 1%).

If you haven't already done so, you and your husband should strongly consider using the maximization software available on this website to compare your options and determine your optimal filing strategy.

Best, Jerry