Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
SS File and Suspend scenario for us
Old 09-09-2013, 07:22 PM   #1
Recycles dryer sheets
 
Join Date: Aug 2010
Posts: 359
SS File and Suspend scenario for us

I am 57 now. I am 5 & 1/2 years older than DW. My FRA is 66 yr 4 month; DW's FRA is 67. We both worked in similar IT jobs and worked exactly the same # of years so far, so our benefits would be similar if we both ER next year.

We both plan to file at 70 to receive reduced benefits due to ER.

I am trying to see if we could benefit from doing File and Suspend:
The Spousal Benefit Option for Social Security Benefits Getting Your Financial Ducks In A Row

Is this below a doable scenario?

1. When I am 66 yr and 4 month, I file and Suspend.
2. A year later, when DW is 62, she files for spousal benefit and receives 1/2 of my benefit amount.
3. When I am 70, I file again and receive my benefit.
4. When DW is 70, she files for her own benefit.

The extra benefit we would be receiving is the spousal benefit that DW will receive for about 8 years.
__________________

__________________
fh2000 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-09-2013, 08:26 PM   #2
Thinks s/he gets paid by the post
 
Join Date: May 2006
Location: Largo
Posts: 1,945
Your wife's benefit at 62 and 70 will be reduced significantly because she began taking benefits based on your record prior to her FRA, right?

But maybe you knew that already. Or maybe I'm mistaken.
__________________

__________________
Buckeye is offline   Reply With Quote
Old 09-09-2013, 09:20 PM   #3
Recycles dryer sheets
 
Join Date: Oct 2011
Location: Park City
Posts: 101
What Buckeye said.

I think if your wife waited until her FRA, she could claim spousal at that time with no reduction in her benefit, which could then grow until she's 70.
__________________
sunsnow is offline   Reply With Quote
Old 09-09-2013, 09:30 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Quote:
Originally Posted by Buckeye View Post
Your wife's benefit at 62 and 70 will be reduced significantly because she began taking benefits based on your record prior to her FRA, right?

But maybe you knew that already. Or maybe I'm mistaken.
That's how I remember it as well. If she starts spousal at FRA then she can take her normal age 70 benefit later. If she starts spousal at 62 she has permanently reduced her benefits.

I'm in a very similar situation. DW should get spousal at ages 67, 68, 69, and then normal benefits at 70.

Depending on your actual life expectancies, you could also consider your wife claiming at 62 and you at 70. The lower benefit is dropped with the first spouse to pass, the higher benefit remains as long as either of you lives. Kind of takes the middle road in the early/late debate.

I'm pretty sure it was T Rowe Price that had a decent SS claiming calculator. Or search for it on some of the threads here.
__________________
Animorph is offline   Reply With Quote
Old 09-09-2013, 09:45 PM   #5
Recycles dryer sheets
 
Join Date: Apr 2013
Location: Vienna
Posts: 55
Bedrock Capital Management has an online tool (SSAnalyze!) which calculates an optimized claiming strategy (registration required).
__________________
MildlyEccentric is offline   Reply With Quote
Old 09-09-2013, 10:53 PM   #6
Dryer sheet aficionado
 
Join Date: May 2013
Posts: 28
Your wife cannot file at 62 for just a spousal benefit. Prior to FRA, if you file for a spousal benefit, you will be deemed to have filed for your own retirement benefit as well (provided that you are eligible for a retirement benefit).

CFR 404.623(b) is where this rule comes from.
__________________
Mike Piper is offline   Reply With Quote
Old 09-10-2013, 11:15 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 6,337
Hmmm. Thanks for reminding me of this. I just checked out one of the calculators. I may be able to collect at 66 from my ex wife's SS account, while delaying my SS to 70. That would be an extra four years of SS for me!

My ex can't collect on my account since she remarried. Poor thing.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 09-10-2013, 11:47 AM   #8
Thinks s/he gets paid by the post
RockyMtn's Avatar
 
Join Date: Jul 2009
Location: North Scottsdale
Posts: 1,233
Quote:
Originally Posted by Chuckanut View Post
Hmmm. Thanks for reminding me of this. I just checked out one of the calculators. I may be able to collect at 66 from my ex wife's SS account, while delaying my SS to 70. That would be an extra four years of SS for me!

My ex can't collect on my account since she remarried. Poor thing.
And I don't believe you can collect from you ex's as you remarried as well.
__________________

__________________
FIRE'D in July 2009 at 51...Never look back!
RockyMtn is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 01:51 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.