Q & A
I will be 67 in March 2014, and my estimated Social Security benefit at that time will be $2,414. I continue to work, but will likely discontinue working as of the start of 2015, and thus will need to supplement our savings with SS benefits. My spouse will be 62 in January 2014, and no longer works. Her SS benefit at 62 would be approximately $940. We are both in reasonably good health. What makes the most sense: 1) My spouse claims at 62, and I file a restricted application receiving the spousal benefit while my SS benefit increases; or 2) I file and suspend, with my spouse claiming one half my benefit? Or, eliminating a scenario where we each delay any claiming beyond 2014, is there any other strategy you suggest we investigate?
Answer: Generally, if either one of you expect to live past your mid-eighties, earning delayed credits on your retirement is preferred if the goal is to maximize the total received over both your lifetimes. Choosing either a restricted application (option 1 above) or a file and suspend strategy (option 2) will accomplish this. Looks like a restricted application would produce a better result because she will be under her full retirement age (FRA) and will have her spousal benefit reduced accordingly. If your goal is to get as much as you can from Social Security as soon as you retire, you would both file when you (WB) retired. Upon the death of either of you, the survivor will only get your benefit, because it is larger than hers.
Source: MarketWatch.com – January 3, 2014