Today’s column addresses questions about filing first on a spouse’s benefits and then for retirement benefits, filing for retroactive retirement benefits after first taking spousal benefits and whether it’s worth taking the option at 70 to file six months retroactively. 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 I File For Social Security On My Wife’s Record At 62 And Then On My Own At 67?
Hi Larry, My wife is 67 and has been drawing her Social Security retirement benefit since she was 62. I am 60 . Can I file for spousal benefits on her record at 62 and then file for retirement benefits on my own record at 67? If so, will filing doing so affect my retirement benefit at 67? Thanks, Thomas
Hi Thomas, Only people born prior to 1/2/1954 are allowed to apply for spousal benefits without also being required to file for their own benefits at the same time, and even they can only do so if they apply for spousal benefits at full retirement age (FRA) or later.
Since you were born after 1/1/1954, whenever you file for either spousal benefits or your own Social Security retirement benefits, you’ll be deemed to be applying for both benefits. You can then only be paid essentially the higher of the two benefit rates, and if you start drawing prior to FRA, your benefit rate will be reduced for age.
You 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
If My Wife Switches From Spousal Benefits To Her Own Benefits Retroactively, Will Social Security Recover What She Was Paid For Those Months From Her Back Pay?
Hi Larry, If my wife is receiving spousal benefits, and files to switch to her retirement benefit only and does so retroactive six months, will Social Security recover her spousal amount she received for those last six months before they pay her the lump sum? Thanks, Jeffrey
Hi Jeffrey, Yes. If your wife’s been drawing spousal benefits and applies to switch to her own higher retirement benefits retroactively, Social Security would only pay her the difference between her own benefit rate and her spousal rate for any months that she’s already been paid spousal benefits.
Note that she’ll also lose six months of delayed retirement credits (DRCs) at the rate of 2/3rds of 1% for each month she files retroactively. This would mean she’ll lose the 4% increase to her PIA that she’s earned in the last six months. Her PIA is equal to her retirement benefit if she took it at her full retirement age (FRA). Best, Larry
Am I Missing Something?
Hi Larry, I just turned 70 in June. I’ve been receiving a spousal benefit since I was 66. I applied to receive my own retirement benefit starting in June.
However, I received a phone call from Social Security about getting retroactive benefits back to December 2020. I don’t see any benefit to this. I would get a lump amount but about $100 less in monthly benefits. Am I missing why any healthy person would take that option? Thanks, Nikole
Hi Nikole, There are circumstances (e.g. poor health with no potential for survivor payments) where it might be advantageous to opt for a retroactive payment in lieu of a higher ongoing monthly benefit rate, but in most cases opting for the higher monthly rate is a better choice.
I don’t have enough information about your situation to be able to advise you, but my guess is that you’re likely making a good choice by waiting until the month you reach 70 to switch to your own retirement benefits. Best, Larry