When to take Social Security
Hi Terry, I have reached my full retirement age, almost 67. My husband will turn 62 this year. His social security payments will be more then mine are. Neither one of us has taken them yet. I have heard you say to not touch it until you are 70. Is there any strategy with the age difference between us to make it beneficial for our income. I am thinking of leaving my part time job and taking my SS payment within the next few months. Would you have any advice for us? I know you can work part time and still get your payments, but at this point I am looking forward to not working, or possibly getting another part time job down the line that suits me better. Even I do not go back to work, should I take my SS payments at this time? Thank you very much.
Terry Says
This is an interesting situation, and it requires some sophisticated analysis as to the long-term best strategy. The best way to get correct advice is to go to MaximizeMySocialSecurity.com and pay the $49 to let them do the calculations.
First, you need to understand the impact on your own benefits if you can wait to collect until age 70. It makes a substantial difference in your base benefit — and increase of about 8% for every year you wait. And future inflation adjustments are made on that larger base. REad this:
https://www.terrysavage.com/waiting-to-take-social-security/
Separately, your spouse should wait until his full retirement age to collect — age 67 — so his benefit is not permanently reduced. At that point he is eligible either for half of YOUR benefit — your benefit at age 67, not 70 — OR his full retirement benefit — whichever is larger.
BUT if you die first, and you are still married and have been married for 10 years, and have taken your benefits at age 70 — then your spouse gets your full benefit. So there is another incentive to wait until 70.
Again, please go to Maximize to get specific numbers and answers for your situation.
