Quote:
Originally Posted by Hal :-)
You're close, but there's a problem. You can't take the spousal benefit to let you're own benefit grow until you reach Full Retirement Age (FRA). A spouse can take their spousal benefit at 62 (ex. if they've never work, as you say). It'll be appropriately reduced but they can not get a larger benefit on their own earnings later. The "suspend" situation is, you reach FRA, apply and suspend, and your spouse takes their spousal while yours continues to grow.
I'm 65 now. My younger wife already took SS on her earnings at 62. I'll take my spousal benefit (1/2 hers) next year, at 66. Let mine increase 8%/yr till 70.
As someone said, this is a complicated issue, it depends on marital and work situation, health, expected benefit, personal assets, etc.
I chose my path because my benefit is the larger one and it will be the survivors benefit when one passes. The break even point is around 80 regardless, but somehow I thought the COLA adjustment on the larger benefit would be especially helpful for the survivor. I just had a friend lose his wife and he said he was really surprised when he suddenly realized he was taking a big income hit losing his wife's SS and pension.
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My husband and I went to SS and asked about me taking 1/2 of his SS (he is 2 years older) for me at 62 and then taking one at 70. They calculated what his and my SS would be at full retirement age (66). If 1/2 of his SS (at 66) is less than what my full retirement would be (at 66), then I could do it. As luck would have it mine would be more by just a few dollars.....darn, if I only retired a year earlier, I would have been better off.
Just remember in figuring that SS bases that type of eligibility on full retirement age amounts.