Social Security

[beachbaker]

I am 71 and retired early (55) after I sold my business to help with childcare for our daughters preschool children. My wife is 67 and has not applied for SS since we do not need the income and want to max out her benefit and wait for her to turn 70. Our income comes from investments and a couple of rentals as my SS is not that high since I took it at 62,she currently gets a pension from her job. My question is if I pass away before she turns 70 can she just receive my benefit and wait until she is 70 to get her higher one or must choose which one at my time of death. Thanks, Curt

 

[ziggy29]

Since she is already of full retirement age, she could file for survivor benefits and receive your 100% of your benefit as survivor benefits (if she were younger than full retirement age she would receive a reduced amount). When she is ready to file for her own benefit, assuming it's larger, of course, the survivor benefit goes away and she starts collecting her own benefit.

So yes, she can just take your survivor benefit until she turns 70 and then apply on her own record for a larger check.

 

[ivinsfan]

Do you mean spousal ziggy?

 

[ziggy29]

Do you mean spousal ziggy?

I mean survivor benefits. To my knowledge a "spousal benefit" is when you file for SS and get half of your spouse's benefit amount because your own earned benefit would be even smaller than that.

 

[ivinsfan]

I mean survivor benefits. To my knowledge a "spousal benefit" is when you file for SS and get half of your spouse's benefit amount because your own earned benefit would be even smaller than that.

At 67 she should be grandfathered in to get a spousal and let hers continue to grow until 70. she could get a check now she's leaving money on the table.

 

[beachbaker]

Thanks so much for the quick answer as it helps with tax planning. One of the reasons for putting off her SS is I am taking additional out of my self directed IRA to try to reduce it so when she hits 701/2 and must take hers the tax hit will be less. She maxed out her contributions to her IRA the last 10 years she worked so with growth she has more than I do. We both funded our Roth's as well. I did the math and with my SS, her SS, her pension and both RMD's and rental income the tax hit when she is RMD required will be extreme. Our answer is to put off her SS and take as much out of my IRA so when her RMD hits and her SS at 70 kicks in my self directed IRA will be somewhat less. Curt

 

[beachbaker]

She is not entitled to a spousal benefit as she has a California Public Employees Retirement and since her job required paying a fully funded SS there will be no offset. Curt

 

[MissMolly]

She is not entitled to a spousal benefit as she has a California Public Employees Retirement and since her job required paying a fully funded SS there will be no offset. Curt

If she paid into SS while working as a California Public Employee she is indeed entitled to spousal SS. No way would I leave free money on the table. I just filed for my spousal to start in November when I turn 66. I am in our state's retirement system but always paid into SS so I am entitled to receive it.