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Old 08-23-2020, 07:29 PM   #81
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I am 64, DW is 59, my wages were higher of the two,

I figure, I will collect $ 3200/month starting at age 70,

DW will start collecting her SS of $ 1050/month at age 62 & when she turns FRA at 66 she will start spousal benefits of $ 1600/month.
I was just looking at this today, just in case my status changes. I thought I read that the spousal benefit is 1/2 of your PIA amount, which is at full retirement age, not 70. Now, her survivor benefit would be whatever you were getting, so it would be $3200 if you waited until 70, and predecease her. It's possible I read this wrong or had old info.
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Old 08-23-2020, 07:55 PM   #82
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I think you are right, I missed that, I will have to change the plan. Thanks
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Old 08-23-2020, 08:12 PM   #83
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These are the numbers I have at SS.gov -

At FRA I will draw $2462 & at age 70 $3200

DW at age 62 will draw $ 1050, & at FRA - $1478 & at age 70 $1832

As our investment returns can support our living expenses, it may be better that DW also draw at age 70.

What do you guys think ?
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Old 08-23-2020, 08:24 PM   #84
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Originally Posted by rkser View Post
DW will start collecting her SS of $ 1050/month at age 62 & when she turns FRA at 66 she will start spousal benefits of $ 1600/month.
I thought this loophole had been closed?
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Old 08-23-2020, 10:36 PM   #85
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Originally Posted by statsman View Post
I thought this loophole had been closed?
What rkser is planning seems viable for rkser and spouse.

Using Open Social Security: Free, Open-Source Social Security Calculator to understand one's specific situation can be very helpful.
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Old 08-24-2020, 06:09 AM   #86
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Quote:
Originally Posted by rkser View Post
I am 64, DW is 59, my wages were higher of the two,

I figure, I will collect $ 3200/month starting at age 70,

DW will start collecting her SS of $ 1050/month at age 62 & when she turns FRA at 66 she will start spousal benefits of $ 1600/month.
Quote:
Originally Posted by RunningBum View Post
I was just looking at this today, just in case my status changes. I thought I read that the spousal benefit is 1/2 of your PIA amount, which is at full retirement age, not 70. Now, her survivor benefit would be whatever you were getting, so it would be $3200 if you waited until 70, and predecease her. It's possible I read this wrong or had old info.
Keep in mind that your DW never get 1/2 of your PIA of $1,600/month if she started early. If she starts at 62, she would be entitled to $1,047... 32.71% of your PIA. If she starts at 67, she would be entitled to 50% of your PIA... $1,600/month.

Quote:
Enter your date of birth (month/day/year format): 6/15/1960

Enter the effective month and year for which you would like to begin receiving benefits: 7/2022 (You must be at least age 62 to begin receiving benefits.)

You will reach normal retirement age in June 2027
.
Effect of the retirement choice on your benefit:

You choose to receive benefits 59 months before normal retirement age. Your benefit will be 32.71 percent of the worker's primary insurance amount.
If she waited until she was 67 she would be entitled to 50% of your benefit.

Quote:
Enter your date of birth (month/day/year format): 6/15/1960

Enter the effective month and year for which you would like to begin receiving benefits: 6/2027 (You must be at least age 62 to begin receiving benefits.)

You will reach normal retirement age in June 2027
.
Effect of the retirement choice on your benefit:

You choose to receive benefits when normal retirement age. Your benefit will be 50 percent of the worker's primary insurance amount.
https://www.ssa.gov/oact/quickcalc/spouse.html

If you predecease her then she'll "inherit" your benefit... $3,200/month if you wait until FRA, less if you claim earlier and more if you delay.
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Old 08-24-2020, 07:12 AM   #87
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Quote:
Originally Posted by pb4uski View Post
Keep in mind that your DW never get 1/2 of your PIA of $1,600/month if she started early. If she starts at 62, she would be entitled to $1,047... 32.71% of your PIA. If she starts at 67, she would be entitled to 50% of your PIA... $1,600/month.



If she waited until she was 67 she would be entitled to 50% of your benefit.



https://www.ssa.gov/oact/quickcalc/spouse.html

If you predecease her then she'll "inherit" your benefit... $3,200/month if you wait until FRA, less if you claim earlier and more if you delay.



Everything you said seems correct to me. However, your last sentence isn't quite right as he mentioned the $3200/month is at age 70 not FRA. It would be $2462/month at FRA according to the OP.
Sorry to nit pick.
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Old 08-24-2020, 08:09 AM   #88
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It seems the SORR danger/worry caused you to take SS early, which seems (IMHO) premature and wasteful................
Well, I didn't withdraw any funds during this year's crash. I used the dips to buy more.
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Old 08-24-2020, 08:49 AM   #89
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Originally Posted by pb4uski View Post
If you predecease her then she'll "inherit" your benefit... $3,200/month if you wait until FRA, less if you claim earlier and more if you delay.

I presume you're talking about SS in general and not about OP's situation. His DW cannot collect a survivor benefit.
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Old 08-24-2020, 08:50 AM   #90
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Originally Posted by rkser View Post
These are the numbers I have at SS.gov -

At FRA I will draw $2462 & at age 70 $3200

DW at age 62 will draw $ 1050, & at FRA - $1478 & at age 70 $1832

As our investment returns can support our living expenses, it may be better that DW also draw at age 70.

What do you guys think ?
Deleted, I was wrong about what her spousal benefit would be at FRA.
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Old 08-24-2020, 08:51 AM   #91
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I presume you're talking about SS in general and not about OP's situation. His DW cannot collect a survivor benefit.
Why not?

EDIT TO ADD: OK, not the OP, but I thought pb4 had switched to rkser's situation since he seemed to be using those numbers. I guess that's another reason to start your own thread rather than threadjack with your own questions, to avoid confusion.
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Old 08-24-2020, 10:55 AM   #92
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Opensocialsecurity.com has the optimal way as -

Recommended Strategy
The strategy that maximizes the total dollars -

She should claim at age 62 - yearly $ 12489

I claim at age 70 - yearly $ $ 38210

Once she starts her SS at age 62, I guess she cannot jump at her age of 65 (5 years younger than me )to taking 1/2 of my SS at age 70, which will be $ 14105.
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Old 08-24-2020, 11:05 AM   #93
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She can never, ever get 50% of your age 70 amount. The most she can ever get is 50% of your PIA amount. And to get the full 50% of your PIA amount, she needs to wait until her full retirement age to file.
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Old 08-24-2020, 11:25 AM   #94
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Everything you said seems correct to me. However, your last sentence isn't quite right as he mentioned the $3200/month is at age 70 not FRA. It would be $2462/month at FRA according to the OP.
Sorry to nit pick.
Good point... I thought that the $3,200 was FRA benefit.

So if his PIA is $2,462 and her PIA is the if she starts at 62 she would get 32.71% of his $2,462 PIA... or $805. And if she waits until her FRA she'll get 50% of his PIA or $1,231.
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Old 08-24-2020, 12:07 PM   #95
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For clarity sake -

A) I will claim my SS at age 70 - $ 38210/pa

DW has 3 options -

B) She claims hers at age 62 - $ 12489/pa

C) If she claims her own SS at FRA - $ 17736/pa ( $ 5247/pa more than hers at 62 - after waiting for 4 odd yrs, )

D) If she wants to claim half of my SS (at my FRA of $ 2462), at her FRA it will be 1/2 of mine = $ 1231/mo

So, D) is not even in running, so cancel this,

Now DW has to decide between B) & C)

As per Open Security's actuarial tables, she will do better with B) i.e She will claim her own SS at age 62.

Am I thinking right ?

Thanks a lot, & like many other times, again I appreciate your help
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Old 08-24-2020, 12:55 PM   #96
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As per Open Security's actuarial tables, she will do better with B) i.e She will claim her own SS at age 62.

Am I thinking right ?
Yes, I think so. I'm guessing Open Security is factoring in that she is more likely to outlive you than vice versa. She'd switch to getting your benefit as the survivor, so that gives her longevity insurance even with starting at 62.

I apologize for misunderstanding earlier what she could get with a spousal benefit. I'll refund your money for what you paid for my advice.
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Old 08-24-2020, 01:03 PM   #97
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No need to apologize, these Social Security calculations are, as such a _itc_,
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Old 08-24-2020, 01:14 PM   #98
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.... Now DW has to decide between B) & C)

As per Open Security's actuarial tables, she will do better with B) i.e She will claim her own SS at age 62.

Am I thinking right ?...
No, I suspect not. The default mortality table for opensocialsecurity is the SS mortality table which is dated, especially if your DW is healthy. We use the preferred non-smoker tables since we are healthy and it makes a big difference.
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Old 08-24-2020, 01:39 PM   #99
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No, I suspect not. The default mortality table for opensocialsecurity is the SS mortality table which is dated, especially if your DW healthy. We use the preferred non-smoker tables since we are healthy and it makes a big difference.

OK,

Yes, DW is healthy & a non smoker, what do you think the preferred tables say or would say.

OpenSS also in addition says DW "would breakeven at age 87". what does this mean or convey ?
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Old 08-24-2020, 02:04 PM   #100
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No idea, you'll have to run your numbers.

But to give you an idea of the impact, when I run the default assumptions but with a female the EPV is $241,567... if I jut change the mortality table to non-smoker preferred the EPV is $280,942.... so a 16.3% increase in EPV.
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