I am single, will be 66 in January 2017 and was born in 1951. Could I file for Social security benefits at my FRA benefit level, draw them for about a year and then stop/suspend them from age 67 to 70 and let them grow with delayed retirement credits? I would keep working 66 to 70 and the money from the year of benefits would allow me to pay off about $12,000 in credit card debt, some of which is at 6.7%/year and some at about 7.7% per year.
I am 66. My wife is 63. If she applies for reduced benefits (for which I will receive spouse benefit), then suspends from age 66 till age 70, will her benefit with delayed retirement credits be based on her full FRA benefit or her early reduced benefit?
This is what we refer to as the start-stop-start strategy. Basically, your wife would keep the reduction she takes for starting prior to full retirement age (FRA), and the delayed retirement credits (DRC) would be calculated based on her reduced benefit amount.