Note: Consider everything as 2014 dollars.
My wife and I are almost the same age, but she stopped working ~9 years ago. Unless she goes back to work after the kids are all in school, her personal SS income will be pretty low: ~$650 in todays dollars at age 62. Mine would be ~$1,500. If I wait until age 70, it rises to ~$2,600.
So, what if my wife takes her personal benefit at 62, and I take a spousal benefit while I let my own SS keep growing until 70? At that point, we swap over to my benefits
From 62-> 70, we would be getting $975 a month.
At age 70, it would change to ~$3,800 due to a family cap.
Is this doable under the current SS system?
Yes, as we get closer, we would look at how the numbers would change at various points. For now, just consider this extreme example.
My pension does NOT have a cost of living adjustment*. Once I retire, it doesn't change. It also vanishes when I die, unless I take a lower payout. So, I'm looking at this to "ladder" Social Security as an inflation adjustment.
So, I will be able to pull my pension in 16 years at age 56, roughly $3,000/month.
At 62, it rises to roughly $4,000 with the first SS bump.
At 70, it rises to roughly $6,800 with the second SS bump.
Thoughts? Social Security experts?
*unless there is a surplus in the pension fund. Currently there is a moderate deficit, and I don't see that changing anytime soon. If nothing changes, it is projected to go empty in ~60 years when I am 100 years old. Inflation will have eaten away most of the usefulness anyway. Instead of taking the lower pension payout to have it continue after my death, it will probably be cheaper to get term life insurance. Again, something to run through as this gets closer.
