Optimizing SS when you have minor dependents?

[BigJ]

Me: I am 61 and had plan to retire in about 4-5 years. I have two at home dependents ages 14 and 11. I have been reading up on how SS works when you have minor dependents. Here is how I understand it if I were to retire in my early 60s:

• At age 62, I get 70% of my monthly FRA amount.
• Each of my minor dependents get 50% of my FRA amount until they are 18 or out of high school.
• The SS payments to my dependents go on their tax return and would likely be tax free.
• All the amounts are COLA annually.

Have you been through this before and is my understanding correct?
If so, my breakeven point of waiting is well into my 90s. That is before adjusting for taxes and the timing. The extra benefits could go a ways toward funding some college.

 

[NYEXPAT]

Me: I am 61 and had plan to retire in about 4-5 years. I have two at home dependents ages 14 and 11. I have been reading up on how SS works when you have minor dependents. Here is how I understand it if I were to retire in my early 60s:

• At age 62, I get 70% of my monthly FRA amount.
• Each of my minor dependents get 50% of my FRA amount until they are 18 or out of high school.
• The SS payments to my dependents go on their tax return and would likely be tax free.
• All the amounts are COLA annually.

Have you been through this before and is my understanding correct?
If so, my breakeven point of waiting is well into my 90s. That is before adjusting for taxes and the timing. The extra benefits could go a ways toward funding some college.

I have been collecting since 62 along with my two son's who where 6 mos and 9 at the time.

I do not know exactly what I get but your wife can also claim until the youngest is 16 and the max (family benefit) is 150%-180% of your FRA. In my case, each of my son's get slightly more then 1/2 my age 62 benefit. My wife did not take her benefit, so we left some money on the table.

They collect until 18 or finish HS with a max age of 19.
Do not know about taxes, as we live overseas and do not file. Someone else can answer.
They are cola'd.

 

[Brett_Cameron]

I started collecting in January at age 62 for me and DS 14. Works as you described, OP.