This worked for me. SSAnalyze - Bedrock Capital Management.
SSAnalyze - Bedrock Capital Management
It was consistent with the Kotlikoff suggestion for me.
I'm trying to follow this, but I'm a bit lost. So, is it agreed that he should file first at 62, and I would then have to wait until he filed before I file. (This would make me 68.5)
I'm not understanding I don't think. His reduced benefit for filing early would be approximately $1050. Then after I have filed, he can file for spousal (does he have to wait until his full retirement age of 67?) Half of my PIA would be approximately $1370. So he would then get MORE than his original $1050 but LESS than half of my benefit? So, our plan for him to file at age 62 and me to file at age 66.5 won't work because of our 6.5 yr age difference - I would be filing before him, and that will lower his spousal somehow? Sheesh.... sorry for the questions.
Have you tried plugging your situation into the tool that davef mentioned? If so, what did it say?
Things I'm fairly certain of:
Neither of you are grandfathered under the 2015 law, since you're both born after 1954.
As a married couple, as long as you both are alive, you can potentially qualify for four benefits:
1. You can qualify on your own earnings record,
2. Your husband can qualify on his earnings record,
3. You can qualify for spousal benefits on your husbands record,
4. Your husband can qualify for spousal benefits on your record
At any time that you are collecting benefits, if you try to collect two benefits (for example, you trying to collect benefits 1 and 3), you will get the larger of the two and Social Security will describe this as getting the smaller benefit plus an amount of money for the second benefit that will result in a total equal to the second benefit. For example, if you your retirement benefit is $1000 and your spousal benefit would be $1200, they'll give you $1200 and describe it as $1000 retirement benefit plus $200 excess spousal benefit.
I'm pretty sure that spousal benefits don't increase after FRA (the FRA of the person claiming benefits on the spouse's record, not the FRA of the spouse).
From the Kotlikoff book I referenced, I also find the following information:
You have to be 62 or over to collect spousal benefits and your spouse has to have filed for his/her retirement benefit. (page 69)
The full spousal benefit equals one half your spouse's full retirement benefit...the spousal benefit is equal to half of your spouses retirement benefit at FRA. So whether your spouse takes theire retirement benefit early or late doesn't directly impact the size of your spousal benefit...If you were not grandfathered, you'll be forced to take your retirement benefit at the same time as you take your spousal benefit. This is a key feature of a provision called deeming. We call it the deeming deamon, since Social Security won't pay you both benefits. They'll pay you, roughly speaking, the greater of the two. This means you lose one of the two benefits. (58, 59)
Furthermore, deeming works in two directions. If you file for your retirement benefit and you are subject to deeming, you'll be deemed to be filing for your spousal benefit as well if you're eligible. (60)
If you take retirement or spousal benefits before FRA, they will be subject to an early retirement reduction for each month early. Taking your own retirement benefit at 62 vs FRA is a 25% reduction. Taking spousal benefits at 62 entails a 30% reduction. (51)
If you qualify for spousal benefits, your benefits will be no larger if you wait beyond FRA to take them. (92)
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I'd still recommend trying out the tool that is linked at the very top of this post. Since you mention that he is in poor health, I would pay particular attention to the life expectancy that the tool provides for your DH is one that you find reasonable. It's simply too hard to figure out otherwise.
That being said, because you're both subject to deeming and you are the higher earner, you'll end up collecting your retirement benefits and he'll end up collecting spousal benefits on your record. If he had longevity, it will probably recommend that he start collecting spousal benefits on your record at his FRA and that you start your retirement benefits at your age 70. The shorter his longevity, the more it might make sense for him to collect spousal benefits closer to 62.
One other note: You can start collecting benefits at any age and they'll be calculated to the nearest month. So, for example, you could start collecting retirement benefits at 68 years and 7 months of age, and they'd calculate benefits based on that full age, and not round it to 68 or 69. This applies to reductions for benefits before FRA and the increase in benefits after FRA.
Hope that helps.
Good luck!