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Social Security for couples Part 2
Old 05-26-2018, 12:46 AM   #1
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Social Security for couples Part 2

OMG, this website is the best. I have been reading SS of couples and could not help myself. I have googled for years trying to figure out the best time to take SS. I never seen a situation where "Older Spouse made less than younger one".

Old Spouse turning 62 makes, 50K a year, younger spouse (56)makes 150K++ for 30 years.

Question: What would be the best way to Max SS? I understand both wait to 70 but that is not an option, waiting a few years is.

THANK YOU!!!!
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Old 05-26-2018, 08:59 AM   #2
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We're in the same situation. My wife is five years younger than me, but has always earned more than I have. Everything I've ever read says to wait until full retirement age or later. Of course, that's not always a possibility. It really depends on what other income you have to live on until you file for SS. We'll have my wife's pension and my IRA, but can't live on that indefinitely. In our case we'll both have to file for SS around 62 or 63 or my IRA will run out of funds.



I use the Flexible Retirement Planner to experiment with different filing ages (using figures from our SS statements, assuming we'll only receive 75% of those amounts). I've tried numerous scenarios and we always come out ahead with both of us filing early.

The Flexible Retirement Planner | A financial planning tool powered by Monte Carlo Simulation


I also found this article a while back that you might find helpful:

https://www.forbes.com/sites/nextave.../#2dbb52bb3041


Of course, you could always work longer which may let you take SS later.
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Old 05-26-2018, 10:21 AM   #3
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You can use these calculators to get a read on it. https://www.forbes.com/sites/johnwas.../#7c30ad24321a
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Old 05-26-2018, 11:49 AM   #4
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Quote:
Originally Posted by jw72 View Post
....

Question: What would be the best way to Max SS? I understand both wait to 70 but that is not an option, waiting a few years is.
That is a huge piece of the puzzle.

Don't forget that by getting more later (delayed SS), you can spend more of the nest-egg now (since it will be supplemented with the higher SS, you don't need as much nest-egg for the same income).

So it really depends a lot on the size of the current nest-egg, expected spending, any income between now and then,how many a 'few' is, etc...

-ERD50
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Old 05-26-2018, 12:06 PM   #5
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Thank you all, I have used the calculators and they do not help. I was thinking was my wife take it early 62-63 and I wait as long as I can, 68-70 if possible. Can she then get 50% of mine when I start to collect? that should giver her a raise and if I die first she will get 100% of mine.
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Old 05-26-2018, 12:17 PM   #6
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Thank you all, I have used the calculators and they do not help. I was thinking was my wife take it early 62-63 and I wait as long as I can, 68-70 if possible. Can she then get 50% of mine when I start to collect? that should giver her a raise and if I die first she will get 100% of mine.
She will only get 50% of your FRA NOT 70 benefits.
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Old 05-26-2018, 01:00 PM   #7
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She will only get 50% of your FRA NOT 70 benefits.

If she takes it at 62 or 63 she will not get 50% of his FRA. She will get a reduced amount. To get the full 50%, she must wait until her FRA.
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Old 05-26-2018, 01:17 PM   #8
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If she takes it at 62 or 63 she will not get 50% of his FRA. She will get a reduced amount. To get the full 50%, she must wait until her FRA.
Yes sorry, I should have been clearer, that 50% would be used as the base to start the calculation, not the 70 benefit.
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Old 05-26-2018, 06:46 PM   #9
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OK, that makes perfect sense. If she takes it early, and I wait to 67 or 68 and I die will she get 100% of mine? Or a reduced amount?
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Old 05-26-2018, 07:46 PM   #10
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If she waits until she is FRA to switch to yours then she will get 100% of what you were receiving. If she is below FRA when she switches, she will get a reduced amount. FRA is the magic age for lots of these different scenarios.
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Old 05-26-2018, 10:07 PM   #11
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OP - Besides the free calculators , there are also a few companies that cost up to $100 which will tell you the best time to collect SS. They have been reviewed in various financial magazines.



My opinion is, your Wife with $150K earnings will have a much larger SS than you, so she should wait until FRA or later, and you with the smaller SS can take it whenever you want, as she really needs to rely on her own record.
With the age difference, you may die long before she does.


Besides the SS collecting, with your combined high earnings, perhaps you want to delay SS in order to do Roth Conversions to lessen the tax torpedo effect of SS and RMD's at age 70
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Old 05-26-2018, 10:08 PM   #12
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Someone on this forum had a link to Bedrock Capital SS analyzer.... for some reason I cannot get it... searches gives me nothing on why it went away...


I found it most helpful as you could put in both parties info and it would tell you what was the best solution... even yours...


Maybe someone knows what happened to this calculator...
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Old 05-27-2018, 05:00 AM   #13
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If she waits until she is FRA to switch to yours then she will get 100% of what you were receiving. If she is below FRA when she switches, she will get a reduced amount. FRA is the magic age for lots of these different scenarios.
SS has always confused me when it came to what the spouse will get. At full retirement age I will get $2500 a month, my wife is 5 years younger and will receive $1200 a month at her full retirement age. So she will receive my amount after I pass if she's waited until her full retirement age to claim SS?
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Old 05-27-2018, 05:51 AM   #14
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Someone on this forum had a link to Bedrock Capital SS analyzer.... for some reason I cannot get it... searches gives me nothing on why it went away...


I found it most helpful as you could put in both parties info and it would tell you what was the best solution... even yours...


Maybe someone knows what happened to this calculator...
It was taken down a few weeks ago, alas.
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Old 05-27-2018, 07:28 AM   #15
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I may be mistaken, but I think the rules changed recently on spousal benefits. Unless you turned 62 by Jan 2016, the new rules apply. Essentially, if you turn 62 after this date, once a spouse applies for SS, s/he will get the larger of the spousal benefit or their own benefit. They will have been deemed as applying and no longer can get a spousal benefit while waiting for their own benefit to further accrue.
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Old 05-27-2018, 07:55 AM   #16
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I may be mistaken, but I think the rules changed recently on spousal benefits. Unless you turned 62 by Jan 2016, the new rules apply. Essentially, if you turn 62 after this date, once a spouse applies for SS, s/he will get the larger of the spousal benefit or their own benefit. They will have been deemed as applying and no longer can get a spousal benefit while waiting for their own benefit to further accrue.

You are correct, but the latest question was about survivor benefits, not spousal. The survivor benefits were not affected by the new law.
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Old 05-27-2018, 10:11 AM   #17
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OMG, this website is the best. I have been reading SS of couples and could not help myself. I have googled for years trying to figure out the best time to take SS. I never seen a situation where "Older Spouse made less than younger one".

Old Spouse turning 62 makes, 50K a year, younger spouse (56)makes 150K++ for 30 years.

Question: What would be the best way to Max SS? I understand both wait to 70 but that is not an option, waiting a few years is.

THANK YOU!!!!



Rereading, I want to make sure.... when you say 'old spouse', do you mean you? OR, this was your first spouse and you now have a second who made much more money?
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Old 05-27-2018, 11:42 AM   #18
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What would be the best way to Max SS?
If you want a precise answer, check out https://maximizemysocialsecurity.com/

Quote:
I understand both wait to 70 but that is not an option, waiting a few years is.
Waiting isn't an option because you can't afford to wait? How long can you afford to wait?

If you can't afford to wait, then don't.
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Old 05-27-2018, 12:56 PM   #19
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It (SSAnalyze) was taken down a few weeks ago, alas.
Just to add, I believe Bedrock was bought out by another company so SSAnalyze went bye bye. It's a shame as it was one of the best free tools I've seen.
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Old 05-28-2018, 05:11 AM   #20
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+1. I thought it was a great tool... unlike some other tools out there it included discounting for the time value of money.
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