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).
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