SS File and Suspend scenario for us

[fh2000]

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.

 

[Buckeye]

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.

 

[sunsnow]

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.

 

[Animorph]

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.

 

[MildlyEccentric]

Bedrock Capital Management has an online tool (SSAnalyze!) which calculates an optimized claiming strategy (registration required).

 

[Mike Piper]

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.

 

[Chuckanut]

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.

 

[RockyMtn]

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.