Dear Larry,
A summary of our situation is as follows:
1) At FRA I started drawing the maximum allowable PIA at that age (66) - July 2014
2) My wife turned 63 in Feb 2016 but has not filed for any SS benefit
3) We still have a fair amount of credit card and other debt that we need to pay off
4) Our rationale for taking the funds at 66 & not at 70 was to try and pay off our debt by age 70
5) Now (after reading your book) I am thinking of suspending my benefits (for at least 2 years) and get 8% per annum and increase the amount to say $ 3,000.
6) At 70 when I start getting the higher amount, my wife, who I have been married to for 41 years, will apply for spousal benefits in the amount of 50% of my age 70 benefits.
7) When my wife reaches age 70, she will get her maximum, which is what I am getting now.
8) We both are still working and I have contributed and am still contributing the maximum amount of FICA taxes.

My questions are as follows:
1) Are we "grandfathered" under the new law?
2) Is our strategy of paying off our debt from our PIA the correct one
3) Based on our current situation, is the strategy to suspend the right one allowing my wife to get 4 years of spousal benefits before she starts getting her retirement benefits at 70 ?
5) If we are indeed "grandfathered", can she start with her maximum spousal benefits now?
6) What are the risks associated with this strategy ?
7) What is is the application process ?
8) Will our strategy affect her "widow" benefits in any way ?
9) Any suggestions ?

Many thanks, Jim

Dear Jim,

You and your wife are grandfathered. Your wife was 62 on January 1, 2016, so she can file just for a spousal benefit once she reaches 66. At that point, you will be over 70 and collecting your retirement benefit again. So, yes, you should suspend immediately and then restart at 70. This will raise the widows benefit your wife will collect if you die.

I hear you about your credit card debt and get the fact that suspending your retirement benefit will be a short-term hardship. So the real question is whether following this proposed SS plan is worth it? How much more will it produce in lifetime benefits compared to having to really pinch pennies for the next two years. Our software can tell you this. When you run the scenario of suspending now and restarting, focus on your benefit at age 71, after you have collected your higher benefit for a full calendar year. That's what your wife will receive as a widow. Right now, she'll just receive your current check. I'd do what you suggest, but the software will also tell you if this is the optimal strategy in terms of lifetime benefits.

My best, Larry