Optimizing SS benefit for one primary wage earner and spouse.

[ubobwilson]

Info:

1. I am the sole wage earner, born March 1961 (61 now). My wife has not worked so will only be eligible for spousal benefits. She was born Oct 1962 (59 now).

2. My income history will qualify me for the maximum amount of benefit. 

3. We won't "need" the SS benefit so we plan to maximize (or rather "optimize") the long term benefits.

4. We are both healthy so have average (more likely above average) life expectancies.

5. My current plan is to start taking both of our benefits when my wife turns 67 in Oct 2029. My thinking is that both of our benefits will be increasing until then (worth the wait). At that point my wife will have reached the maximum. I will be at 68 7/12 years old. I will only be missing out on 1 5/12 years of my possible increase to age 70. Our thinking is that we will have received most of the benefit of waiting (while both of our benefits are growing) and from that point on there is only a small potential growth of one of our benefits (mine) at 2/3 the previous growth rate of the two combined .

Pretty reasonable plan, right???

Thanks!!!

[KarenP12]

It sounds like you have done a lot of research on this topic and understand the consequences.  If your financial situation and savings allow you to defer, you are correct you will receive a higher benefit at that time.  You will also want to look at your other sources of retirement income and at what times they will start paying out such as 401K's, Traditional IRA's, etc.

It appears at this point, the only other item to do would be to sit with a Financial Planner and ensure you can meet all your life goals, trips, family and any other things you want to ensure you have budgeted for.

Many good articles are linked here from Social Security for any other readers:  https://www.ssa.gov/benefits/retirement/learn.html

[DOlli_EA]

Hi Bob,

It sounds like you have really thought this through, and your choice sounds very reasonable!

“What’s the best age to start receiving retirement benefits?” The answer is that there’s not a single “best age” for
everyone and, ultimately, it’s your choice. The most
important thing is to make an informed decision. Base
your decision about when to apply for benefits on
your individual and family circumstances.

Here are some additional thoughts and resources.

How to make the decision when to apply to claim Social Security Benefits: https://www.ssa.gov/pubs/EN-05-10147.pdf

If one spouse passes away, the other spouse may receive a greater benefit using the Spousal Benefit.  SSA Spousal Benefit source: https://www.ssa.gov/OACT/quickcalc/spouse.html