Topic: Filing strategy when large age difference.
Will probably purchase your planning tool, but still would like a general idea prior to that. I'm 60 years old. I retired from my company in 2009 with 31+ years, at the age of 50 (turned 51 one month later). I earned approx. $80k at retirement. I will turn 61 this October, so am approaching my SS decision timeline. My husband is 15 years older than me (76 in July). He retired in 2001 at 59 after 32+ years. He earned approx. $120k/yr at retirement. (Note: both my husband and I worked more years than just at the company from which we retired.) When he first became eligible, he signed up for reduced Social Security as he had two older siblings who died before age 70 -- one from heart disease, the other from cancer. Plus, he had just gone through very serious intestinal surgery. Wasn't sure if that would impact his long-term health/longevity. So, eventually, I will have reduced benefits as a spouse due to his decision. My question is this: I have very longevity in the women in my family (typically late 80s into mid-90s). Would it make sense to wait until 70 to claim my SS? Do I have to apply for spouse benefits at 62 when first eligible. I've heard about applying for, then suspending benefits. Due to our age difference, it makes this process quite confusing. My husband and I feel I need to be careful to maximize my potential benefits, as I may live a considerable amount of time beyond him. Much appreciated.

Hi,

You certainly don't have to file for your benefits at age 62, and if you do you'll be stuck with a reduced benefit rate for at least as long as both you and your husband are living. You couldn't voluntarily suspend your benefits until you reach full retirement age, and there doesn't appear to be any reason that you would want to file for and suspend your benefits as opposed to simply waiting to file until you're ready to start drawing benefits.

Assuming that your potential widow's rate from your husband's record would be higher than your own benefit rate even if you waited until age 70 to file, then you'd probably want to file sooner rather than later. However, since your husband filed for his benefits at age 62 your widow's rate would probably be calculated at 82.5% of his primary insurance amount, which is probably not too much more than the reduced rate he's currently receiving. So if your own benefit rate at age 70 would be significantly higher than that then it may make sense for you to wait.

I think you'd find our software very helpful in determining your best filing strategy. The software will allow you to compare all of your options tailored to your individual circumstances in order to identify the strategy that would likely be the most financially advantageous in your case.

Best, Jerry