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Interesting SS article
Old 05-10-2008, 02:46 PM   #1
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Interesting SS article

Here is yet another article aimed at letting us all know how to "job" the SS system. Seems like I have heard of this scheme before but if it can work for you, give it a whirl.

One other Social Security option even less well known is for one spouse to begin taking social security at an early age while the other spouse holds off until full retirement age.
As an example, Janice begins taking Social Security at 62 or 63, while Ned delays his application until 66 (full retirement age). Then Ned files for a spousal benefit. Ned will get more than half of Jan's benefit because the IRS will calculate the benefit based on Jan's full retirement age even though she is younger. Our example assumes Jan and Ned are the same age.
Ned continues to receive the spousal benefit for four years until he's 70, then he applies for his own Social Security based on his work earnings history. He will then receive the maximum payout. His Social Security benefit will be about 33% higher than if he had taken Social Security at 66.
Using this strategy allows Ned to receive some benefits starting at 66 and still get his increased benefit at age 70 as if he had waited. The break-even point for this strategy is 79, meaning the strategy provides higher total benefits after nine years than Ned and Jan would have received if both applied for full benefits at 66. (Check the information at this site).
Two Ways To Optimize Social Security Benefits - Features
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Old 05-10-2008, 05:20 PM   #2
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All these discussions on this topic are foreign to my way of thinking. It's kinda like eavesdropping on discussions of how to squeeze value out of the non-moldy half of a loaf of bread from the day-old outlet store. I smile sadly at people who must retire & live on this pittance.

Investments, IRAs, and 401(k) to live on,
company pension for trips to Europe or Bahamas,
Social Security for lap dances.
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Old 05-10-2008, 05:52 PM   #3
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Originally Posted by rayvt View Post
I smile sadly at people who must retire & live on this pittance.
These "options" for SS are not for those that need the SS and "live on this pittance".

They are however, for folks like me/DW who can actually afford to live well without SS, but are willing to maximumize our "return" on this "benefit".

BTW, we are planning on taking the route quoted by the OP. We are both the same age. DW will claim SS at age 62. I will claim my "spousal benefit" (at 50% of my wife's age 66 full benefit) and then claim my SS at age 70.

That's our plan. Stick around for another 9 years and I'll tell you if it worked ...

- Ron
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