My husband passed away in 2010 we were married for 8 years, we both worked, I intend to work until age 62, I am 60 now. His social security monthly amount is higher than mine will be. Can I collect 100% of his social security payment at age 62 as a widow and forego my social security. Will I receive a reduced amount at 62 less than 100% of his retirement amount. Will I be penalized for working and making 70k a year if I completely stop at age 62, or does the penalty start at age 60. Financially I believe I need to work another two years but not beyond that. What do you suggest? Thank You.

Hi,

I'm sorry for your loss.

No, if you start drawing widow's benefits before full retirement age (FRA), your benefit rate will be reduced for age. And, as long as you're still working, the Social Security earnings test (https://www.ssa.gov/planners/retire/whileworking2.html) could limit your ability to receive benefits until you reach FRA.

It sounds like your best strategy is likely one of the following:
1) File for reduced widow's benefits now or as soon as your earnings will permit benefits to be paid, then switch to your own record at age 70; or,
2) File for reduced retirement benefits on your own record at age 62 or as soon as your earnings will permit benefits to be paid, then file for unreduced widow's benefits at full retirement age.

However, if your husband received reduced Social Security retirement benefits prior to his death, if could affect your optimal strategy. Our maximization software can help you determine which of the above filing strategies is best in your case, as well as when to apply for each type of benefit.

Best, Jerry