I will turn 62 10/10/2020. My husband is a resident alien in the US over 25 years and contributing to his SS. He is also 7 years younger than I am. I have not worked the last 4 years due to my husband being ill. He has continued to work from home. He has a disease that will unfortunately not allow him to live to retirement or perhaps not even to 60. Without his income I will either have to go back to work, move to a less expensive dwelling and many other issues. We’re contemplating me claiming my retirement next year and using the money to pay off the home. Questions are would that be wise? Should I wait until my FRA is possible (depending on his health and lifespan)? He’s worried about me living in poverty and so am I. He does have a 401k that has around $350k+, we have savings of $35k. He’s not eligible for a life insurance policy due to his disease. If he has to go on SS disability due to his health how does that affect any future widows benefit? What should we be planning for the best scenario?
Thanks!

Hi,

I'm sorry to hear about your husband's health problems. My expertise is limited to Social Security benefits, so I'm unable to give you any other type of financial advice. Only you can ultimately decide when to start drawing your benefits, but I can tell you that if you file for benefits at age 62 you'll be stuck with a reduced benefit rate for at least as long as both you and your husband are living. Your monthly benefit rate would be roughly 28% lower at age 62 than it would be if you waited until your full retirement age (FRA) to start drawing.

Regardless of when you start drawing your benefits, though, in the event of your husband's death you would be eligible for the higher of your benefit rate or his benefit rate if you file for survivor benefits at FRA or later. So, if your husband's benefit rate will be higher than yours and if his expected lifespan is limited, then filing for your benefits at age 62 may work out best for you in the long run. But, if your own benefit rate would be higher than your husband's rate you may want to wait until FRA or age 70 to apply so that you're not stuck with a reduced rate for life. No one can predict the future, though, so there is no way to be certain. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to compare your various options in order to help you determine which strategy would likely work out best for you in the long run.

If your husband files for Social Security disability (SSDI) benefits it will have no adverse effect on your benefits or options. SSDI benefits are paid at 100% of the disabled worker's primary insurance amount (PIA), which is the amount of their Social Security retirement benefit at FRA. So, if your husband qualifies for SSDI it would be like drawing his full retirement benefit rate early.

Best, Jerry