Romer
Recycles dryer sheets
Wanting to make sure I have this fully understood. I will use our numbers as an example. I thought it was best to wait until both of us were 67. Now thinking otherwise
DW FRA is $11,700
My FRA is $44,844
So if we both take it at 67 the Spousal Benefit is $22,422
The $22,422 is made up of her SS $11,700 + the Spousal Makeup of $10,622. There are two components.
As long as I don't file until 67 (She is 30 days older) the spousal Makeup value doesn't change even if she starts SS at age 63.
However her component to the Spousal does change for 63. Her SS at 63 is $8,820.
So if she files at 63 and I file at 67, the spousal at 67 is $9,408+$10,622=$19,482
She could collect 4 years of SS of $42,648
The lower total SS at 67 then would be $2,940 less a year. At that value it would take 14.5 years (age 81.5) to break even (simple math with other factors like taxes, COLA, etc not considered)
Doing this doesn't change her Survivor benefit which is equal to my FRA value
The change to my understanding is that only her portion of the Spousal Benefit scales by her taking SS early. The spousal makeup is independent and doesn't get reduced at 67, but will if I file earlier than my FRA. I knew about both components, but thought they both scaled if she filed early even if I didn't.
Is this correct?
DW FRA is $11,700
My FRA is $44,844
So if we both take it at 67 the Spousal Benefit is $22,422
The $22,422 is made up of her SS $11,700 + the Spousal Makeup of $10,622. There are two components.
As long as I don't file until 67 (She is 30 days older) the spousal Makeup value doesn't change even if she starts SS at age 63.
However her component to the Spousal does change for 63. Her SS at 63 is $8,820.
So if she files at 63 and I file at 67, the spousal at 67 is $9,408+$10,622=$19,482
She could collect 4 years of SS of $42,648
The lower total SS at 67 then would be $2,940 less a year. At that value it would take 14.5 years (age 81.5) to break even (simple math with other factors like taxes, COLA, etc not considered)
Doing this doesn't change her Survivor benefit which is equal to my FRA value
The change to my understanding is that only her portion of the Spousal Benefit scales by her taking SS early. The spousal makeup is independent and doesn't get reduced at 67, but will if I file earlier than my FRA. I knew about both components, but thought they both scaled if she filed early even if I didn't.
Is this correct?