Lower earning spouse claiming Social Security early

[blue_green_sparks]

I started looking at various SS strategies. I was gonna take mine at 65, but I am thinking maybe if she claims on her record at age 62, I will delay until 68. Then she can file for spousal benefits at 35% of my full retirement age benefit. That is still more than her full benefit. This way it won't feel like forever to collect something something while reducing longevity risk. Of course, she would have to marry me first ;)

him her    his ss   her ss     total/mo    total/yr
65   61   $0           $0                 $0       $0
66   62   $0           $882              $882   $10,580
67   63   $0           $882              $882   $10,580
68   64   $3,204     $1,100       $4,304   $51,644
69   65   $3,204     $1,100       $4,304   $51,644

Anybody care to share their experiences doing a mixed strategy like this?

[Fru-Gal]

Wow never heard of this! PTF

[Sandi_k]

I'm not sure she can file for spousal benefits early - I think it used to be allowed as a "restricted application." It's now been disallowed unless you were born prior to Jan. 1, 1954.

https://www.thebalance.com/social-security-rules-for-restricted-applications-2388915

[blue_green_sparks]

I'm not sure she can file for spousal benefits early - I think it used to be allowed as a "restricted application." It's now been disallowed unless you were born prior to Jan. 1, 1954.

https://www.thebalance.com/social-security-rules-for-restricted-applications-2388915

My understanding is that that rule disallows the opposite case where you take spousal benefits early
and then switch to your own record later after the amount has ripened. But I am still learning....I got the idea from running the open social security app and looking at the puzzling results.
https://opensocialsecurity.com/
.....and it does ask for birth dates.

[Omy]

We are planning to do something similar. I am the lower earning and older spouse. I was planning to start benefits at 62 and have DH wait until as late as possible. I now think I might delay mine until 65 (Medicare age) since I don't want SS income reducing our ACA credits.

If he dies before I do, I can then switch to his higher benefit from being the higher earner and from him delaying benefits.

I'm not sure how sound this approach is, but I have a few years to figure it out.

[JupiterGreen]

This thread is right on time for me because I've been thinking about this topic lately. We aren't super close to pulling SS, but we are trying to factor it into our long term plan. I've used this calculator https://opensocialsecurity.com/ and assumed the assumptions are accurate, but I would be interested in what people think about the calculations. TBH, I don't know what you mean about spousal benefits. Wouldn't you both simply be pulling your own benefits and (ostensibly) then pooling them together? Forgive my ignorance, I am woefully uneducated on SS.

[blue_green_sparks]

This thread is right on time for me because I've been thinking about this topic lately. We aren't super close to pulling SS, but we are trying to factor it into our long term plan. I've used this calculator https://opensocialsecurity.com/ and assumed the assumptions are accurate, but I would be interested in what people think about the calculations. TBH, I don't know what you mean about spousal benefits. Wouldn't you both simply be pulling your own benefits and (ostensibly) then pooling them together? Forgive my ignorance, I am woefully uneducated on SS.

Experts, please correct my understanding.

If married for at least a year, one may claim on your own record OR on your partner's work record. This way, a spouse (for example, a non-employed child rearing spouse) who never paid SS taxes can still qualify for a benefit. The max one can claim is 50% of their spouse's benefit at the spouse's full retirement age (FRA is age 67 for those born after 1960). If you claim on your spouse's record before YOUR full retirement age, your amount is reduced to something below 50% of spouse's FRA benefit.

You are no longer allowed to claim on your spouse's record and then at a later date claim on your own record (as the benefit amount would grow). You can however claim on your own record and then at a later date claim on your spouse's record. Like if you claimed on your record and then got married, you can switch over in a year.
Depending on your relative ages and benefit amounts, this opens up possibilities.

[MDM]

I got the idea from running the open social security app and looking at the puzzling results.
https://opensocialsecurity.com/

That is pretty much the gold standard for evaluating social security benefit timing.

It does depend on the discount rate you choose (see Claiming Social Security Early to Invest It: What Rate of Return (Discount Rate) Should We Assume? for more on that), and does not consider the effect social security income might have on your Roth conversion strategy.

[Much Fishing to Do]

I've always looked at SS in my planning as a kind of a longevity insurance, so planned to take it at 70 with (usually SAHM) spouse taking spousal benefit at that same time (when she is 69) as our SS income at that point would actually be enough to get by on then and going forward if the nest egg ever fails...but definitely planned on her taking on her own record as soon as she turns 62. 

[wageslave23]

This thread is right on time for me because I've been thinking about this topic lately. We aren't super close to pulling SS, but we are trying to factor it into our long term plan. I've used this calculator https://opensocialsecurity.com/ and assumed the assumptions are accurate, but I would be interested in what people think about the calculations. TBH, I don't know what you mean about spousal benefits. Wouldn't you both simply be pulling your own benefits and (ostensibly) then pooling them together? Forgive my ignorance, I am woefully uneducated on SS.

Experts, please correct my understanding.

If married for at least a year, one may claim on your own record OR on your partner's work record. This way, a spouse (for example, a non-employed child rearing spouse) who never paid SS taxes can still qualify for a benefit. The max one can claim is 50% of their spouse's benefit at the spouse's full retirement age (FRA is age 67 for those born after 1960). If you claim on your spouse's record before YOUR full retirement age, your amount is reduced to something below 50% of spouse's FRA benefit.

You are no longer allowed to claim on your spouse's record and then at a later date claim on your own record (as the benefit amount would grow). You can however claim on your own record and then at a later date claim on your spouse's record. Like if you claimed on your record and then got married, you can switch over in a year.
Depending on your relative ages and benefit amounts, this opens up possibilities.

This is correct.  Higher earner should delay at least until full retirement age - this is a no brainer.  The rest depends on how long you think both spouses are going to live.  If you think both will live a long time then delay both.  If you think one may die earlier than expected claim the lower spouse early.