RetiringAt55
Recycles dryer sheets
I apologize if there was a thread with a definitive answer on this but I was unable to find one.
I am almost 10 years younger than my husband. He is currently 64 and plans on working another year when he will then retire. His SS is estimated to be slightly higher than mine. Because of his poor health (cancer and heart issues) we have been planning assuming he will live until 80. Our planning assumes I will live until I'm 95, so I may have a very long widowed retirement.
So our SS strategy was for him to wait until he is 70 to collect so it preserves the delayed benefit credits for me. I have run scenarios with me collecting at 62 and at 67 and there is a slight advantage in collecting at 62, assuming my husband lives to 80. However the question is on what happens to SS if he should die after I start collecting at 62 but before I am 67.
Looking at the ssa website there is some confusing language:
"A few other situations:
If you already receive benefits as a spouse, your benefit will automatically convert to survivors benefits after we receive the report of death.
If you are also eligible for retirement benefits (but haven't applied yet), you have an additional option. You can apply for retirement or survivors benefits now and switch to the other (higher) benefit at a later date.
For those already receiving retirement benefits, you can only apply for benefits as a widow or widower if the retirement benefit you receive is less than the benefits you would receive as a survivor."
The first part implied that the benefit automatically converts to the survivor's benefit. But is that reduced since I may be less than 67?
The last part implies that it does not happen automatically and that you have to apply for it to get it to change. So if that is true, then would it be decreased if I were under 67?
I know if one had not applied yet at the time of the spouse's death, you can choose to apply for the survivor's at 60 and then switch to your own at 70. Also you can choose to apply for your own at 62 and switch to survivor's at 67. But what if you already filed for your own benefit?
Running through Fidelity RIP, it makes the assumption that the SS stays at the amount my husband would be receiving. Is this correct? (Firecalc does not model this so I have had to model death of a spouse through Offchart spending.)
Does anyone know the answer for sure regarding what happens at the death of a spouse when the widow is currently collecting early? It could make a big difference in the results. Should I wait until I am 67 to prevent SSA from messing up my survivor benefit since there is some ambiguity?
I am almost 10 years younger than my husband. He is currently 64 and plans on working another year when he will then retire. His SS is estimated to be slightly higher than mine. Because of his poor health (cancer and heart issues) we have been planning assuming he will live until 80. Our planning assumes I will live until I'm 95, so I may have a very long widowed retirement.
So our SS strategy was for him to wait until he is 70 to collect so it preserves the delayed benefit credits for me. I have run scenarios with me collecting at 62 and at 67 and there is a slight advantage in collecting at 62, assuming my husband lives to 80. However the question is on what happens to SS if he should die after I start collecting at 62 but before I am 67.
Looking at the ssa website there is some confusing language:
"A few other situations:
If you already receive benefits as a spouse, your benefit will automatically convert to survivors benefits after we receive the report of death.
If you are also eligible for retirement benefits (but haven't applied yet), you have an additional option. You can apply for retirement or survivors benefits now and switch to the other (higher) benefit at a later date.
For those already receiving retirement benefits, you can only apply for benefits as a widow or widower if the retirement benefit you receive is less than the benefits you would receive as a survivor."
The first part implied that the benefit automatically converts to the survivor's benefit. But is that reduced since I may be less than 67?
The last part implies that it does not happen automatically and that you have to apply for it to get it to change. So if that is true, then would it be decreased if I were under 67?
I know if one had not applied yet at the time of the spouse's death, you can choose to apply for the survivor's at 60 and then switch to your own at 70. Also you can choose to apply for your own at 62 and switch to survivor's at 67. But what if you already filed for your own benefit?
Running through Fidelity RIP, it makes the assumption that the SS stays at the amount my husband would be receiving. Is this correct? (Firecalc does not model this so I have had to model death of a spouse through Offchart spending.)
Does anyone know the answer for sure regarding what happens at the death of a spouse when the widow is currently collecting early? It could make a big difference in the results. Should I wait until I am 67 to prevent SSA from messing up my survivor benefit since there is some ambiguity?
