Social Security options to consider after cancer diagnosis

[skipro33]

I started drawing my SS at age 62 because I figured I would rather have the cash now while young enough to enjoy rather than later when I wasn't able to recreate as much. I'm turning 64 in October. The plan was for my wife to file at her FRA in 3 years and get 50% of my PIA which will get her around $1400 a month adding to our income.

Yesterday I was diagnosed with an incurable cancer. It is manageable, and I'm told I could live past 5 years. I need further testing to determine staging, bone marrow biopsy, PET CT scan, etc. So what I'd like to know is what are the options for my wife going forward if I don't survive more than a year or so?

I'll assume she should still plan on drawing her SS at FRA and if I go quick, she'll pick up my SS and not need to apply for hers.

Or should she draw hers now and assume mine when I croak? Not sure what the best strategy is for her going forward.

 

[MBAustin]

Very sorry to hear about your health issues, skipro. Hope that the rest of the news is good and you get a manageable treatment plan so you can enjoy more years of your retirement.

I'll leave the SS questions to those who are more expert on this, or you may want to talk with an hourly fee financial advisor to get professional advice. Best of luck to you and your wife.

 

[pacergal]

wow, that is tough to hear, skipro. Praying that you get more positive news on the rest of your testing and have a good treatment team to work with.

A conference with at FA might be helpful for you and your wife.

Best wishes to you

 

[MichaelB]

Sorry to hear of the diagnosis, skipro33. Hope you find what’s needed to manage and extend this as long as possible.

 

[RunningBum]

I'm so sorry.

https://www.ssa.gov/benefits/survivors/ifyou.html explains the scenarios. https://www.aarp.org/retirement/social-security/questions-answers/social-security-spouse-dies/ might be written more clearly.

What I take from this is that she should start her benefits now, and switch to survivor benefits when you pass. With no spouse of my own, I don't spend much time on these scenarios, so check them yourself or get advice elsewhere. One would think you could talk to an SS rep directly and they can lay out the benefits in all scenarios, but I seem to recall scenarios where they were just plain wrong in their guidance. An FA is probably a better source if you aren't clear after reading my sources above.

 

[skipro33]

Thanks for the well wishes and encouragement guys. Much appreciated. But hey, it is what it is. Like anything in life, we get busy doing the best we can with what we got and when there's set backs, work through them. Everyone who's successfully FIRE'd or tracking that way understands the discipline it takes to meet a goal and cancer will be just another life-altering event that requires discipline, focus and a plan to work it out.

My first inclination is to get the ducks in a row before any treatment starts. I want a clear head going forward as I make decisions based on this diagnosis. I'll check with Fidelity where my investments currently are, but when I let them manage my money in the past, they stunk at it. Won't go into it all here, but after realizing they were in it for their own financial security first, I went back to self managing and have done quite well with the bulk in just a couple index funds for equity and lesser amounts for international and bond. I see no reason to change that other than my wife is very inept at managing money. My brother, on the other hand, manages his money very well and the both of us manage our father's who has Alzheimers. I trust my brother completely and without any hesitation or reserve, to help out my wife with financial management if I do precede her.

But for the near term, I am curious about SS strategy given the circumstances. Thanks for the links and suggestion to speak with a SS rep. I'll make an appointment at the local office. I'll also give Fidelity the opportunity to pitch their ideas based on my changing health. A local investment company has a talk show on Saturday's I find very compatible to my ideas of smart investing. I think I should maybe see them as well.

Looking forward to further advice, especially anyone who has experience with these circumstances.

 

[BGH1]

I'm so sorry.

https://www.ssa.gov/benefits/survivors/ifyou.html explains the scenarios. https://www.aarp.org/retirement/social-security/questions-answers/social-security-spouse-dies/ might be written more clearly.

What I take from this is that she should start her benefits now, and switch to survivor benefits when you pass. With no spouse of my own, I don't spend much time on these scenarios, so check them yourself or get advice elsewhere. One would think you could talk to an SS rep directly and they can lay out the benefits in all scenarios, but I seem to recall scenarios where they were just plain wrong in their guidance. An FA is probably a better source if you aren't clear after reading my sources above.

I am sorry to hear this, I had cancer 7 years ago, now it’s yearly checks, and hoping you have the same. I agree with this approach, my brother in law passed and this is the path my sister took. She is taking her SS until her survivors benefit is maxed out then switching. So in your case your wife could claim, then when and IF the time comes switch to survivors benefit once maxed out or not.

 

[fosterscik]

This very recent article by Mike Piper may help:
https://articles.opensocialsecurity.com/survivor-benefit-calculation/
Sorry to hear of the diagnosis, skipro33

 

[Retire2013]

So sorry to hear of your diagnosis. Hoping that your medical treatment(s) will go well and that you will live way past the 5 more-year mark.

 

[pb4uski]

This very recent article by Mike Piper may help:
https://articles.opensocialsecurity.com/survivor-benefit-calculation/
Sorry to hear of the diagnosis, skipro33

Skipro, so sorry to hear of your diagosis... such an insiidious disease... took both of my in-laws.

From reading the Piper article quickly, it looks like your DW would get 82.5% of your PIA (FRA benefit) if she waits until her survivor full retirement age... I presume that since you took at 62 that your benefit is around 70-75% of your PIA. It looks like survivor FRAs are a little less than normal FRA's.

You might email Mike Piper and ask his thoughts.

 

[Katsmeow]

I am sorry to hear this, I had cancer 7 years ago, now it’s yearly checks, and hoping you have the same. I agree with this approach, my brother in law passed and this is the path my sister took. She is taking her SS until her survivors benefit is maxed out then switching. So in your case your wife could claim, then when and IF the time comes switch to survivors benefit once maxed out or not.

I think this may depend on whose benefit is larger. I am not sure. But that needs to be looked into. If her benefit is larger then that may (or may not) call for a different strategy.

 

[Scrapr]

Best of luck @skipro33

 

[Koolau]

God bless you skipro33.

I guess it's all a part of life's big crap-shoot. A couple of months after claiming at 70, I was diagnosed with coronary artery disease (shiny new stents to prove it.) Too late to go back and claim at 62. Still my major objective was to "insure" for DW. When I pass, she gets a nice monthly chunk from my SS survivor benefit.

I think if I'm making a point it would be to have the best understanding of your financial goals in light of the diagnosis. It might be well worth seeking a pro who charges (only) by the hour. Good ones will likely let you talk to them for an hour for free. All the best.

 

[troutnut1]

I’m in a similar situation. My wife claimed at 62 and I was holding off until 70. Since I was a heavy smoker (quit 20 years ago) I decided to have a CT scan done looking for cancer. Good news was no cancer. Bad news was “severe emphysema”, though I currently do just fine and still ski 70 days a year. So I decided to immediately claim and stop spending from our savings/investments. I probably should have discovered this many years ago and I might have claimed at 62. My thinking is that my investments will be able to be inherited, and mostly at a stepped up basis, where my SS will end at my death. And the money I don’t have to spend to live will also continue to grow with any luck. My wife will be able to claim on mine later if it is higher than hers which will probably be the case, and my pension will continue for her as well. In general I think lowered life expectancy favors claiming earlier. I just thought I was healthier than the medical field thinks I am.

I am sure sorry to hear of your diagnosis. But it might work out just fine, and I hope that it does. I should mention that I have had many terminal diseases over the years. Colon cancer in 2004 that required major surgery and others including the most recent lung disease. My experience is that we are very lucky to live in the times that we do. There is great hope!

In hindsight I would say that my cancer diagnosis actually improved my life in many ways. The surgery where they gutted me like a trout was hard and required 8 days in the hospital without food or water. Today that would be done through a tiny incision with robots if they had to do surgery at all.

All any of us have is today. No guarantee of tomorrow for any of us. I grieved for a month or two with each terminal diagnosis. Each time I stressed myself into gerd, high blood pressure, lost sleep, etc, which was completely wasted time and enerhy. I don’t intend to waste anymore of whatever time I have left worrying about my eventual demise. Oddly, 6 months before I was diagnosed with colon cancer, CT scans and experts had told me I had liver cancer. It made sense to me because I was a pretty serious alcoholic (quit 11/21/98). Turns out they were wrong and it was just benign cysts. I had the surgeon who performed the colon cancer surgery look over my liver real good when he had it out anyway for the colon re-section. I’d wasted some time worrying about the liver cancer that never was on Christmas 2003...

“Worry is a negative prayer, that actually has the power, to bring about the thing worried about” Chuck Chamberlain-A New Pair Of Glasses


“The reports of my death are greatly exaggerated“... The text of a cable sent by Mark Twain from London to the press in the United States after his obituary had been mistakenly published

 

[Closet_Gamer]

Skipro, that's horrid but your approach and intent is beyond admirable.

I've nothing to offer on Social Security strategies.

Best of luck.

 

[slowwalker]

Sorry to hear of your diagnosis. If indeed you have metastatic cancer, you should file for SS disability. You should be able to apply even though you have already been drawing early benefits. Your benefit amount would jump up to your full retirement benefit once the waiting period (5 months) is up. Assuming your full retirement benefit (or disability benefit) is greater than your wife, she should begin drawing her benefits as soon as possible and delay drawing widows benefits until she is full retirement age.

 

[Chuckanut]

I am sorry for your situation. That disease took my sibling and several good friends well before their time. You are wise to get your SS and other financial issues in order early.

 

[sakowitzm]

Not related to Social Security, but if you have an inkling to convert Traditional IRA to Roth IRA, doing so while there are still two of you around. It's much harder for a single person.

 

[pb4uski]

It's not at all harder for a single person... it just costs a lot more.

 

[sakowitzm]

Yes, roughly double!

 

[Carol1862]

Just wanted to also say I’m sorry for your diagnosis, but you truly have an admirable attitude. We’ve certainly come a long way in treatments for many cancers. Best of luck.