Planning for Social Security

[meadow lark]

  I'm planning far out in the future, but that is what we do here, right?  And I know a million things may change, but, if things stay the same for SS, and the federal gov't decides to recognize my marriage as valid (which I would bet on eventually happening) what would be the most advantageous way to take SS? 
Plans and expectations:  I am 13 years younger than my wife.  We will stay married until someone dies.  My wife makes more $ than I do, and probably always will.  We will both retire in 2024 when she is 62 and I am 50.  We both may work very part-time after that.  We wil be able to retire without getting her SS.  We both have a decent shot at living longer than average lives, based on family history.   
  Does it make the most sense for her to start collecting when she turns 70?  And me to collect from mine at 62?  Then if she passes away before I do I would start collecting her check (that is the way it works, right?)
  I know this is rather silly to plan now, but it helps me relax around a planned 4% SWR.  Especially b/c if the market underperforms in the first 8 years that will be the time it would be easiest for me to get a part-time job, live more cheaply in Thailand or in an RV here, etc.

[Pollyanna]

I can't really advise you because I too am uncertain about what social security will be there for me, if any, and basically I am planning financially not to count on it.  I have friends who are older than I and they have started collecting at 62 just to get it and not hold off for the higher amount.   We'll see if others reply with advice, but it may make sense to run the #s when your wife hits 62 and perhaps just have her start collecting then and bank it if you don't need it. 

[Catbert]

If you think you'll both live longer than average, delay her SS until 70.  I *think* that each year you delay after full retirement age (66 for me, later for you) its an 8% raise.  I *think* SS works it so the break even point is around 82-83 years of age.  As long as one of you lives longer than that you'll come out ahead. Its even a better deal since you are so much younger than your spouse.

You say its way in the future so a lot could change between now and then.  But based on what you said that's what I'd do.

[Another Reader]

When spouses both have benefits, especially when one spouse is significantly younger, maximizing Social Security benefits becomes very complicated.  This issue is addressed by several fairly reliable PF bloggers and is explained to a limited degree at the Social Security website.  This is so important that I would take the time to research and understand the options available to the two of you and not rely on a forum for the answer.

[grantmeaname]

Have you seen the Bad Money Advice article about getting the best of both worlds?

[TheDude]

Just so everyone knows I dont think its possible to take the benfit at 62 and then reset at 70 anymore. This was done away with in 2010. Heres a link http://money.usnews.com/money/blogs/planning-to-retire/2010/12/08/social-security-payback-option-eliminated

[grantmeaname]

Good to know, I'll keep that in mind. Cool loophole while it lasted...

[TN_Steve]

"Another Reader" has a good point; it is complicated when two wage earners are involved, although the general rule is to wait until 70 1/2.

Many/most people could probably benefit from an expert consultation on this.  The Older, generally higher wage earner, oft-times should "file and suspend" at full retirement age, allowing the younger, lower wage-earner to claim the spousal benefit at that stage.

I've spent some time analyzing (in our case, the younger person is the higher wage earner, which throws a loop), and I'll put a lot more time into it when (and if) we are eligible for SS payments.  A good higher level reference is the short book "social security strategies" by Reichenstein and Meyer.

(Again, it is complicated.  I am a practicing lawyer who is comfortable with numbers and I probably will pay a third party to sign off on my conclusions when we get close to choosing our claiming strategy.)

[Miamoo]

We are aged 54 (me), DH is 56.

Our plan is for me to start taking the SS benefits at 62 and bank it or invest it,   DH will delay till - as long as possible - or?  We're not sure but watching things unfold with legislature bla, bla, bla.  Who knows where things will be when he hits full retirement 10 or 11 years from now.

Based on the articles and research I've been doing - at this time . . . I can file at 62 then switch over to the spousal benefit when he retires and starts collecting netting us an extra $200/month.

Anyone know about this?  Comments?

PS - no Meadow Lark it's never too early to start planning!!!! :-)