The 62/70 Social Security Strategy

[stephencullum]

I retired 5 yrs ago close to 63 yrs old. I created spreadsheets to model life time income from SS for me and the wife. Betty is a little over 4 years older and did not have enough SS credits to get a benefit on her own. When I hit 62 she was already past 66 yrs old her full retirement age. To make it a short story because a spouse does not get any delay increase in a spouse benefit after full retirement age and she could not file for a spouse benefit until I filed, the numbers told me both of us to take our SS as soon as I stopped working. Basically we would forfeit a little over 144K of income in that time period and only net about 500 a month more in SS income together if I delayed until my full retirement age of 66 yrs. It would take about 24 years of both of us living to come out even. I would be in my late eighties and she in her early nineties. If I lived 6 years into retirement the benefit was locked in. We had plenty of other retirement income a large pension took as a dual annuity, a decent 457-B account and large combine SS benefit even took early. The only reason to delay was if the extra 500 a month was needed to make it. If that had been true I would not of retired until full SS retirement age. BTW if I die first her survivor benefit would be larger than my SS benefit because she was past her full retirement age when she took her spouse benefit. This is counter to most advice I hear. But the numbers told the story. You are right this is something that has to be calculated out for each unique individual and couple. Waiting for us most likely would of cost us money over our combine lifetimes. If the age difference was reverse or I was single everything would of changed.

[carolapostolos]

Well said. You explain this so well that even I understand it. Thank you so much I really appreciate it!

[JerryA]

Why wouldn't she change from her $1000 benefit and get spousal benefits once you start taking your SS benefit (50% of your $3000 per month - thus pocketing an additional $500 per month)???

[christopherhennessey]

Took it at 62. The move was strategic as I have a minor child, resulting in paying me an additional benefit for her.
The Social Security benefits( mine and dependent ) plus my pension work for me.

[yolylacy]

Thanks a lot for helping us plan our SS/retirement. Great explanation as usual.

[ronloftis]

Isn't it nice and refreshing in that a man who is striving to be Godly admits his flaws and opens his life up to criticism. In the end Josh always dispenses some knowledge and wisdom, whether that be on finance or in life. Thanks

[Stocks]

Can she start her own benefit at 62 and then switch to spousal at 66 when you start your benefit at 70?

[ripemelon]

Right on Jose, you have to crunch those numbers my friend.

[marykochan]

That is so funny about the wrong receipt thing. That will become a running joke now between you and your wife. We had a similar incident in our family when someone contacted me because my daughter's birthday and location was the same as the birth child she had given up for adoption and was looking for. Of course this has led to running jokes in my family about my youngest daughter possibly being adopted. For example, if she does or says something I don't understand, she will say, well my other mother would understand.😅

[changechange]

Josh. Can my spouse take her benefit at 62 and switch to my greater benefit at 67 or 70? We were both born in 1965.

[christinechang]

Thought survival benefit only up to full retirement amount. If husband withdraws the SSC at 67 for $3000, and $3800 at 70, the maximum survival benefit is capped at $3000

[nickpitera]

Only two reasons for taking SS at 62.
1) If you desperately need cash.

2.) If you absolutely DON’T need the cash.

[TheBigjer]

Seems like these scenarios I find are always for one spouse that earns way more than the other. Isn’t similar earnings more common in 2020? We are 4 years apart and very similar projected earning and no idea how to file to maximize benefits. We won’t need the money due to pensions and investments. Thinking both of us waiting to 70 would be a waste.

[natashapeters]

Can you do a vlog on windfall elimination provision?

[Rock]

What happens if the younger of the 2 is the higher earner?

[petejilka]

What would it look like if you took the early social security for, say, $1000 per month and accumulated that payment monthly into an annuity until age 70? In other words, don't spend it, but invest it.

[at]

Sounds like you have a Chick on the side. 😀

[RealSlopeDude]

What if, at age 62, Charlotte's SS income in hindered by the SS earnings limit? Shouldn't she also then wait until age 67?

[davidmuse]

That all sounds great until everyone gets a -25% cut in SS in 2031-2033! How does that factor in with age?