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SS and Wine
Old 08-08-2012, 06:22 PM   #1
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SS and Wine

Since I'm about to ask yet another boring, overdone SS question, I thought putting "wine" in the title might get a little attention . I'm a bit older than DH and have been a SAHM for years. I DO have enough credits to collect about $500/month (= wine budget; see - there is a connection) at age 62. My spousal benefit will be much higher when DH retires a few years later. Can I take mine at 62 and then change to spousal at his FRA? Will mine be reduced?
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Old 08-08-2012, 09:15 PM   #2
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I still have a few years to go before I need to decide, hence have not done any study to have the knowledge to answer your question. However, your bait would get more results if you had used bacon rather than wine as the lure.

Just search this forum, and see for yourself. An entire thread has been dedicated to this greasy food item. Forum members are addicted to it. Whatever money they save by tearing dryer sheets in half, they spend it on bacon and then some.
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Old 08-08-2012, 10:10 PM   #3
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Originally Posted by tessaduncan View Post
My spousal benefit will be much higher when DH retires a few years later. Can I take mine at 62 and then change to spousal at his FRA? Will mine be reduced?
That's my impression. If you start yours at 62, your spousal benefit will also be reduced by that same age 62 factor (0.75?).

Retirement Planner: Benefits For Your Spouse
Even if he or she has never worked under Social Security, your spouse
can begin collecting the benefits as early as age 62. However, if the benefit begins early, the amount will be permanently reduced by a percentage based on the number of months up to his or her full retirement age.

can receive a benefit equal to one-half of your full retirement amount if they start receiving benefits at their full retirement age.

If you are full retirement age, you can apply for retirement benefits and then request to have payments suspended. That way, your spouse can receive a spouse's benefit and you can continue to earn delayed retirement credits until age 70.
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Old 08-09-2012, 12:46 AM   #4
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Waiting on wine
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Old 08-09-2012, 07:03 AM   #5
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Thanks but that still doesn't answer my question - can I receive benefits on MY (meager) work record and later change to spousal benefit at DH's FRA? I'm a bit older so I'd already be there. Would my new spousal benefit be reduced?

Oh, and my "wine budget will henceforth be called "bacon budget"
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Old 08-09-2012, 07:20 AM   #6
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Originally Posted by tessaduncan View Post
Thanks but that still doesn't answer my question - can I receive benefits on MY (meager) work record and later change to spousal benefit at DH's FRA? I'm a bit older so I'd already be there. Would my new spousal benefit be reduced?

Oh, and my "wine budget will henceforth be called "bacon budget"
I think once you retire, that's it as far as SSA in concerned, so an ER at age 62 for your own benefit also results in a reduced spousal benefit.
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Old 08-09-2012, 07:28 AM   #7
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I think once you retire, that's it as far as SSA in concerned, so an ER at age 62 for your own benefit also results in a reduced spousal benefit.
+1

As I understand it, other than a short one year window for a possible "do-over", once you start SS benefits prior to your FRA the age deduction is permanent.
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Old 08-09-2012, 08:24 AM   #8
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Looks like I'll have to cut my "bacon" budget.
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Old 08-09-2012, 09:07 AM   #9
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I've seen conflicting information. One says you will always have a reduced benefit if you file early, another says you can take the spouses benefit if it is bigger.
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Old 08-09-2012, 09:35 AM   #10
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Originally Posted by tessaduncan View Post
Thanks but that still doesn't answer my question - can I receive benefits on MY (meager) work record and later change to spousal benefit at DH's FRA? I'm a bit older so I'd already be there. Would my new spousal benefit be reduced?

Oh, and my "wine budget will henceforth be called "bacon budget"
I thought I answered yes , yes & yes. For the most credible answer:
post your question at bogleheads.org and look for answer by sscritic.........

http://www.newsobserver.com/2010/04/...-benefits.html
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Old 08-09-2012, 09:40 AM   #11
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I've seen conflicting information. One says you will always have a reduced benefit if you file early, another says you can take the spouses benefit if it is bigger.
You can take the spouse's benefit if bigger, but once you start early and take a reduction, that reduction percent will apply. IOW, if OP starts her benefit at age 62, there will be a 25% reduction of what the benefit would be at her FRA. That 25% reduction will also apply if she later takes the larger spouse's benefit.
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Old 08-09-2012, 09:46 AM   #12
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Since one or two glasses of red wine a day have been shown to increase longevity, I recommend delaying taking SS for a few more years if you are a wine drinker.
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Old 08-09-2012, 09:48 AM   #13
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hold off to 66 and you could have some cheese and cracker to go with your wine.

its tough i am 60 and it will pay for me to wait untill 70 (don't need the funds)but i would love to start getting an allowance from uncle sam...will take a look at it in two years.

cc
my wine budget is two buck chuck.
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Old 08-09-2012, 10:53 AM   #14
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kaneoho - sorry, in reading your reply again (after my morning coffee) I see you did answer my question in your first paragraph.
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Old 08-09-2012, 11:04 AM   #15
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I would make an appointment with SS or even call them .They are very helpful with these types of questions . I started SS at 60 survivor benefits and then switched to my benefits which were larger .I like a large wine budget!
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Old 08-09-2012, 12:25 PM   #16
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Welcome to the board.

If you drink enough wine you won't care if your benefits are reduced. Go for it!
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Old 08-09-2012, 01:26 PM   #17
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Quote:
Originally Posted by tessaduncan View Post
Since I'm about to ask yet another boring, overdone SS question, I thought putting "wine" in the title might get a little attention . I'm a bit older than DH and have been a SAHM for years. I DO have enough credits to collect about $500/month (= wine budget; see - there is a connection) at age 62. My spousal benefit will be much higher when DH retires a few years later. Can I take mine at 62 and then change to spousal at his FRA? Will mine be reduced?
That is what DW did. She took SS at 62 and then when I filed a few months ago she bumped it up to the spousal benefit minus a small amount because she had already been collecting on her benefit.

Getting that calculation of the reduction out of SS is problematic. I called up and got 2 different answers, one of them didn't make any sense at all. Anyway if you go in to file they will probably do a good thorough job of answering your questions about the exact numbers.

BTW, the only reason I read this thread was because of the "wine".
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Old 08-09-2012, 01:37 PM   #18
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Thank you everyone for being so helpful & welcoming. We still have about 10 years to FRA but DH was just EER'ed. We didn't see it coming at all, at least not for us this soon, and we're pretty scared right now.
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Old 08-09-2012, 04:48 PM   #19
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Thank you everyone for being so helpful & welcoming. We still have about 10 years to FRA but DH was just EER'ed. We didn't see it coming at all, at least not for us this soon, and we're pretty scared right now.
I can relate to having to ER earlier then planned and it being scary.

I forgot that I had a reply laying around that probably relates to your question as to how to do the calculation. This is from "sscritic" on Bogleheads:

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Old 08-09-2012, 06:39 PM   #20
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I've seen conflicting information. One says you will always have a reduced benefit if you file early, another says you can take the spouses benefit if it is bigger.
This is true, but the spousal benefit will be reduced compared to what it would have been been if you had waited until FRA.
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