Dear Liz: I am 64 and still working and earning decent pay. My wife is 61 and retired. I have been a high earner for most of my life while she was working and raising our family. I don’t plan to retire anytime soon. Is it a good idea for her to start taking Social Security at 62?
Answer: The vast majority of people are better off delaying their Social Security applications for as long as possible so they can maximize their lifetime benefits. It’s especially important for you to delay, since as the higher earner, your benefit will determine what the survivor gets.
Your wife, however, may be one of the few who is better off starting early. That may be the case if you continue to delay your application, and her eventual spousal benefit is more than what she would receive on her own record.
If both of those things are true, she could start her own reduced retirement benefit at 62, then switch to a spousal benefit of up to half of your check after you apply for your benefits — preferably at age 70, when they max out.
Your wife won’t be able to get a spousal benefit until you apply for your own. On the other hand, she won’t be allowed to switch benefits if you’re already receiving yours when she applies.
Clearly, there are a lot of rules involved, and the best course for you two will depend on the specifics of your situation. You’d be smart to use a Social Security claiming site, such as Maximize My Social Security or Social Security Solutions, to help you determine your best approach.
There may be reasons for NOT taking Social Security if the couple needs to do Roth conversions before RMDs kick in, since the “income” from the conversions might impact the taxes on the Social Security
I have a question I’ve not seen asked or answered before. I’ll be 67 in December. I started my (reduced) social security when I was 63 because we needed the money. My husband is 78 and his social security was started at age 65. If he dies before me I can collect his benefit instead of mine. But will this amount be reduced because I took mine early? And if so, by how much would it be reduced?
No. Here’s more about how it works: https://asklizweston.com/qa-clearing-up-the-deal-with-social-security-survivor-benefits/
Dear Liz. You have always advised delaying to taking social security to maximize benefits. However I’m concerned if they “reform” social security by raising the full retirement age this would mean a permanent cut in lifetime benefits. This could happen after the election. Do you still stand by your advice to delay taking benefits?
Anything is possible, but politicians are much more likely to foist benefits changes on future generations than to cut the benefits of current retirees.