Larry, my wife and I are both retired, with combined pensions netting us $4300 a month, and a decent IRA that we plan on using only for emergencies and travel in the future. My wife is 61, and I am 60. We want one of us to take SS at 62 to supplement our retirement income and allow us more freedome to travel. My family health history would indicate that I will not live to be super old, and I want to make the decision based on insuring my wife is in the best position should I die first, before FRA even. Based on our statements from 1/6/2020, I have $2214 at 67, $2746 at 70, $1559 at 62, and survivor benefits for her at FRA of $2248. This is higher than hers, but not greatly. My wife has $2028 at 66(10), $2551 at 70, and $1417 at 62. If I understand what I have read, my strategy would be to take her early amount next February of $1417 to beef up our income, and let mine ride until FRA or even 70, should I be so lucky. If I die at say 65, she will be just approaching her FRA and would get my survivor benefits, correct? This would be more than her own even at FRA. If I pass a bit earlier, she will get a reduced of my FRA but would still be much more than what she is drawing early. Do I have my planning correct, or can you tell me what changes to make. Thanks...Dan
Hi Dan,
If your first priority is to assure your wife of the highest possible survivor rate you should wait until age 70 to start drawing your benefits. If you do that and you die after reaching age 70 your wife would be eligible for your full age 70 rate as a widow. She wouldn't get your full rate plus hers, though, just the higher of the two benefit rates.
If you die before reaching full retirement age (FRA) and before starting your benefits, your wife's unreduced widow's rate at her FRA or later would be equal to 100% of your primary insurance amount (PIA), which is equal to your FRA rate. If you die before starting your benefits and between FRA and age 70, your wife's unreduced widow's rate would be equal to the amount you would have received if you'd started drawing your benefits effective with your month of death.
It won't reduce your wife's survivor rate if she starts drawing her own benefits at age 62 as long as she doesn't start drawing her widow's benefits prior to FRA. However, if she files at age 62 she'll be stuck with her reduced monthly rate for as long as both of you are living. You and your wife may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to compare your various options so that you can make sure to choose the best strategy for maximizing your benefits.
Best, Jerry
