As has been mentioned, there are lots of factors. It would be easier if you knew when you were going to die.
Having some desire to leave something to family, taking it early has another option. If you don’t need it, put it in savings or invest.
Consider a hypothetical death at 69 years, 11 months. The person who waited for the most monthly payment has nothing, The one who saved 8 years of a lower amount has something to leave. Of course, if you are leaving a spouse their benefit is affected by whenyou start.
True, but delaying spousal benefits after full retirement age does not increase them. And the spousal benefits the spouse receives is no more than 50% of your benefit at full retirement age.
Getting spousal benefits before FRA does reduce them.
Happily I’ve never had to look at deceased spousal benefits. The way regular spousal benefits work is that the spouse gets his or her own benefits, and then supplemental benefits if this is less than 50% of the spouse’s benefit at FRA.
My wife’s full benefit at 70 would be less than half my benefit at FRA, which is why she started taking benefits and I started spousal benefits at 66. When we switch when I hit 70 she has lost nothing by her personal benefits being reduced.
Lots of people don’t take advantage of this kind of thing because it is so complicated.
Note that the law on “simple” spousal benefits was changed a few years ago. If you were born on or before January 1, 1954, you can claim 50% of your spouses FRA benefit at age 66 regardless of what your benefit might be. Hence postponing taking your benefits until the maximum age (70+) makes better sense.
For those born latter it only works if one spouse’s benefits are much higher than the others.
I was wondering how that had changed; I knew it had. My oldest brother (born in 1953) told me he’ll be able to claim against his ex-wife’s social security. He may have done so - he’s 66 and a couple months, so if he’s not at FRA he will be soon, and he’s still working so he doesn’t need the income enough to have to get his own yet.
How does Social Security work if you have had two spouses? Both might have been married to you long enough to qualify to claim against their earnings. Do they divide it among the two exes?
That’s what I’m doing. Free money until I turn 70 and turn on my benefits.
You used to be able to register for benefits, have your spouse get spousal benefits, and then turn off your benefits and let them grow. But you have to be born before 1951 to do that - since I can’t.
