Originally Posted by BruceinGa
This is really difficult to find the answer. I found some information at this url:
Benefit Reduction for Early Retirement
It talks about taking spousal benefits at 62 but then mentions taking a 30% reduction by the spouse and a 25% reduction by the primary. It's still not totally clear to me.
My report from socialsecuritysolutions.com suggests that I file and suspend at 66 and DW takes spousal bene's when she reaches 66 (4 months after I reach 66). I take my bene's at 70 and she takes her bene's at 70.
It doesn't mention that we should start at 62.
When I figure total dollars I find there is $60,000 difference for the first 8 years.
What a confusing subject!
So I went to the source you quoted, which I should have done anyway. I found another close by link Benefits for Spouses
that includes a calc to show what the impact would be if you take spousal benne prior to 66.
A quote from the site: "A spouse can choose to retire as early as age 62, but doing so may result in a benefit as little as 32.5 percent of the worker's primary insurance amount. A spousal benefit is reduced 25/36 of one percent for each month before normal retirement age, up to 36 months. If the number of months exceeds 36, then the benefit is further reduced 5/12 of one percent per month."
So I used the calc to see what would happen if I took spousal benne at 62 (gotta be 62 plus one month) at 64, and at 66+4 or my FRA.
I had to add 3 months cause I will need 66+4months for FRA
So if I used a valid method of comparing the options, I should take
spousal benefit as early as possible. I suppose this is because of actuarial chance of not getting all 99 months of benefits.
I would appreciate any comments about is this a valid method of comparing or not. Again, just to keep from having to bounce back to my previous post, I am 3 yrs younger than DW and plan for her to take SS at 66, me at 70 and wanted to take spousal benefit after she retires. Hrmm one problem, I would have to wait till I'm 63 then, cause she has to be 66 in my example...Dang it...so I added age 63 in the table above.