Today’s column addresses questions about whether Social Security spousal benefits might be available before their spouse takes their retirement benefits, why spousal benefits were terminated after filing for retirement benefits and how to determine when to file for maximum benefits. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which markets Maximize My Social Security and MaxiFi Planner.
See more Ask Larry answers here.
Have Social Security questions of your own you’d like answered? Ask Larry about Social Security here.
Can’t My Wife Take Spousal Benefits Before I File At 70?
Hi Larry, my wife was born in 1955 and I was born in 1952. She does not qualify for Social Security retirement benefits under her own work record. Except for me not starting my Social Security retirement benefit, I believe she otherwise would be eligible for spousal benefits if she applied right now under my work record. She has had Medicare benefits under my work record since she was 65.
If I wait until January 2022 to begin my Social Security retirement benefit at 70, my wife won’t be eligible for her spousal benefit until then. She would also be past her FRA. Can she start her benefits this July even though I won’t start my retirement benefit until I turn 70? If not, she will miss seven months of spousal benefits. If not, when is the earliest she could start them? Thanks, Brad
Hi Brad, Your wife can’t be paid spousal benefits for any months prior to the first month that you choose to start drawing your benefits. If you wait until 1/2022 to start your benefits, then that’s the first month that your wife could be paid spousal benefits. If you wanted your wife to be able to collect spousal benefits any sooner than that, you’d have to start drawing your benefits sooner as well.
Basically, you need to weigh whether it’s better for you to give up some of the delayed retirement credits (DRCs) that you could have earned by waiting until 70 to start drawing benefits in order to allow your wife to start drawing spousal benefits sooner. Complicating that decision is the fact that your wife’s widow’s rate in the event that you die before her would be equal to your full benefit rate, so if you start drawing your benefits prior to 70, it will not only lower your monthly benefit rate but it will also mean a lower potential widow’s rate for your wife.
Whenever you decide to start drawing your benefits, both you and your wife could submit your applications up to four months prior to the month that you want to start your benefits. So for example, if you wanted to start your benefits in 1/2022, both you and your wife could submit your applications as early as 9/1/2021.
You and your wife may want to consider using my company’s software — Maximize My Social Security or MaxiFi Planner — to fully analyze the options available to you in order to determine your best strategy for maximizing your benefits. Social Security calculators provided by other companies or non-profits may provide proper suggestions if they were built with extreme care. Best, Larry
How Can Social Security Just Stop Paying Spousal Benefits?
Hi Larry, I was born in 1953 and had been receiving spousal benefits from Social Security for a few years. Last September, I applied for my Social Security retirement benefits.
Then in November I canceled my application and requested to go back to my spousal benefit. In January I received a letter from Social Security saying all payments were canceled.
I did not start my retirement benefits and because I canceled this request, my spousal benefit was terminated and I was told it could not be restarted. I thought I was grandfathered in. How can they just stop paying spousal benefits? Thanks, Kimmy
Hi Kimmy, If your own Social Security retirement benefits are higher than your spousal benefit rate, your spousal benefit entitlement would have terminated when you started drawing your retirement benefits. Benefits that have been terminated can’t automatically be reinstated.
If you’ve now withdrawn your application for retirement benefits, you’ll likely need to file a new application for spousal benefits only in order to become entitled to those benefits again. Best, Larry
What Is Your Best Advice For Us?
Hi Larry, I turned 66 in February. I can file for my Social Security retirement benefit in April at 66 and 2 months and receive $2,350. If I wait till I’m 70, I can receive $3,150. My wife turned 59 in February and is projected to receive $ 2,100 at 67. What is your best advice for us? When is the best time for us to file? Thanks, Jake
Hi Jake, Everyone’s circumstances are unique, so there’s no “one size fits all” best strategy for when a person should start collecting their Social Security benefits. My company’s software — linked to in the first answer above — is designed to analyze all of the variables involved with each individual’s circumstances in order to determine their best strategy for maximizing their benefits.
One thing I would say given the limited amount of available information is that assuming that you and your wife could expect to live normal life spans, it would probably be best for you as the higher earner to wait until age 70 to start drawing your benefits if possible.
That would not only provide you with the highest possible monthly benefit rate for as long as you live, but that higher rate could also potentially be passed on to your wife in the form of a widow’s benefit if you die before her. Best, Larry