I am 66. My wife is 65. I am the higher earner and have a higher benefit. Are there any SS limitations that would prevent me from claiming a spousal benefit if my wife files at 65 v. 66? Thanks, Art
Dear Art,
No, there are no limitations to your filing just for a spousal benefit starting at 66 because you were 62 on or before January 1, 2016. If you do this, you can wait until 70 to take your own retirement benefit at its highest possible value.
If you were 66 on or before April 29, 2016, you should have filed for your retirement benefit and suspended its collection. This would have permitted your wife to file just for a spousal benefit when she reached 66 and both of you could then have taken your retirement benefit at 70 (in your case, you would have restarted it at 70).
It sounds like you either missed the deadline or turned 66 after the deadline. Some lawyers think the real deadline is at the end of August to file and suspend and still provide benefits to your spouse and, potentially, children when your own retirement benefit is in suspension. I've heard of one person her just filed and suspended in mid May and has been told that his wife will be able to collect a full spousal benefit when she reaches 66 mid year. But my guess is that this person was told something that wasn't true and could even be asked to repay money years later if Social Security decided they paid benefits by mistake. The lawyers are probably right about the deadline, but appealing the decision could take years.
Soooo, you strategy may well be optimal. But I'd like you to run it through our software to make sure. It could be that having your wife take her own benefit later and your taking a full spousal benefit later, say at 68, rather than 66 produces higher lifetime benefits. I don't mean to use this column to pressure people to buy our software, but I feel compelled to tell you and others when, in fact, only really precise software that can instantly process all the non-dominated cases is essential to figuring out exactly what to do.
best, Larry
