Ask Terry Questions Taking Spousal Social Security and delaying my own SS

Taking Spousal Social Security and delaying my own SS

By Terry Savage on January 28, 2016 | Financial Planning / Retirement

My wife and I have filed for Social Security. We are 66 years old. She is taking her full benefit and I am taking half of hers. I hope to work until 70 yrs. old and then take my full Social Security benefit. We own a business. What is the best way to work with, invest , etc. the Social Security benefits we will receive until I turn 70 yrs. old.
Thank you.

Terry Says:  Interesting question — and a tricky one!  If you were born in 1953 or earlier, you can still collect spousal benefits AND your own retirement benefits — a “loophole” that is now closed to retirees born 1954 or later.   Since you are now at full retirement age, you can put in a “restricted application” for spousal benefits on your wife’s account, and then at age 70 switch to your own retirement account (on which benefits are growing at approximately 8% a year as you delay taking your own benefits!)  This is a sweet deal.  Just make clear that you are asking for a “restricted application only for spousal benefits now.

What should you do with those four years of checks?  Pay down debt, and save and invest the money.  Guaranteed you will need it someday!

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