That sounds sorta like the old “file and suspend” thing. And only one of us was 62 on/before that date . Oh well.
Welcome back from the afterlife, @mominva . And sorry about your DH.
I am definitely no Social Security expert, but this is my understanding which you can run by your own experts.
The restricted application will work for you if -
The older spouse was born before January 1,1954
The younger spouse is at least 62 and receiving benefits when the older spouse is between 66-70.
This is how it worked for us:
- I filed for SS at 63 (although I could have just as well filed at 62) and began receiving benefits.
- Since my husband was born before January 1,1954, he was eligible to file an application for restricted spousal benefits when he turned 66 this year. We did not find out about this until a few months after he turned 66, but SS will pay as far back as 6 months prior to an application.
- When my husband turns 70, he will drop the spousal benefit and start receiving his own (now much larger) benefit.
I was born before that date, but DH isn’t 62 yet. So we are out of luck, yes?
Rocky - your math may be right about the 7 years to get ahead so you will have to consider all sides. One big plus is that your husband’s benefit will continue to grow until he is 70 which means that if you should survive him, you also will benefit by receiving that higher benefit. If you cannot live with a reduced benefit for him for 4 years, this isn’t for you. This is really a gift for people in our age group who wanted to wait until 70 to start receiving their largest benefit anyway. While waiting to file, they receive a benefit that is only available to a lucky few. To be able to have the older spouse maximize their benefit can be a good strategy. That way, no matter who survives whom, the survivor gets the largest benefit possible. I’m not sure that having both spouses wait until 70 makes better sense.
This could make your head explode. It’s mostly an informed gamble.
jym626 - Will he be 62 soon? This is what I understand. Only the older spouse needs to meet that birth date, so that would be you. When your DH turns 62, if you are between 66 and 69, he can file at that time and then you can file on his account until you turn 70. This works if there is 3 to 4 years between your ages. Clear as mud?
Jym - Freezing your credit precludes you from setting up an account on the SS website to check your benefits or sign up for benefits. I didn’t read this until after DH had frozen his credit. Being a procrastinator, I was able to set up an account on SS website before I froze my credit. My understanding is that you can either unfreeze your credit report, or go to a SS office in person without having to unfreeze your credit.
@shellfell - which credit bureau do they use?
@preironic- Thanks- that is exactly our scenario, but, he wont be 62 for a while. DO you have a link for what you just explained? Thanks!
Retired teacher in a state where teachers do NOT contribute to SS, and are subject to the offset and windfall provisions.
I can NEVER collect on my husband’s earnings…ever.
File and suspend option was closed for those whose birth dates are after …
@bluebayou this sounds different than file and suspend…but if that is what this poster is talking about…it is NOT any longer available.
So can someone clarify? If this is file and suspend, that’s gone. If this is something else, is there a name for it?
Be careful with the math. If older spouse, in this case husband, has a much higher earnings threshold, then younger spouse may be limiting income at age 70, bcos at that time, younger spouse could switch to older spouses’ ‘spousal benefit’. However I believe that such spousal benefit will be reduced due to the early filling of the younger spouse’s benefit at age 62.
In other words, the example given in the PacLife annuity brochure is easy bcos both spouses have the same income/benefit levels. The expected math gets more complicated when there is a significant earnings (PIA) differential between the two spouses.
In general, I agree with TrixieAnn. Waiting until age 70 – if you can and are healthy – is generally a better long-term financial plan. Not only do your benefits increase 8%/yr, but the survivor benefits also increase. And, from an actuarial standpoint, the odds are increasing that one spouse will make it to 90+.
jym - Sorry, but I don’t know which credit bureau SSA uses. Maybe you can call them to find that out.
Yes, it is called, filing a restricted application.
When I learned about “file and suspend” a couple of years ago, I decided my wife and I would follow that strategy. Then last year (was it last year or earlier this year?) they eliminated that strategy (for most of us), so I kissed that one goodbye, but they left a small window open for filing a “restricted application” and my wife and I fall in that window, so we will likely go with that.
I love the evolution of CC… Starts with applying for college, applying for financial aid. Evolves to applying for jobs, then applying for healthcare. Now applying for Medicare and Social Security. Next we will be discussing applications for nursing homes. (for us, not for our parents!)
My H won’t ever be able to collect from SS but his pension is better than any SS benefit I will get when I eventually file anyway.
@thumper1 : Are you sure about your #30 post? Per the SSA website, “Even if you have never worked under Social Security, you may be able to get spouse’s retirement benefits if you are at least 62 years of age and your spouse is receiving retirement or disability benefits.” https://www.ssa.gov/planners/retire/applying6.html
Is there something special about your state’s teacher retirement system that disqualifies you?
I’m positive. This was a deal crafted by eleven or so states…relates to teachers. Teacher pensions are subject to the offset and windfall provisions of SS. I can NEVER collect on my husband’s SS record.
I started colllecting SS at age 62. Believe me…if I was eligible to be collecting half of my husband’s eventual benefit…which is the max…I would be doing so.
I get $187 a month…soon to be $203. Covers my Medicare bill.
My SS benefit will never be more than what is needed to cover my Medicare monthly pay,ent…which is why I started collecting at 62. Bottom line…I got 3 years of SS benefits when I didn’t yet have Medicare.