Ask Larry

Does Filing And Suspending Affect The Benefit Computation?

I understand that SS benefit calculated on highest 35 years of wage-indexed earnings, including earnings between age 66 and 70, for delayed retirement.
However, does this also apply if person “filed and suspended” at age 66 and a spousal benefit has been paid?
In other words, will the delayed retirement SS benefit (to be paid at 70) be updated to include (higher) earnings during suspension period?

Hi,

The same benefit calculation applies regardless of whether or not a person filed and suspended their benefits. So yes, a person's retirement benefit rate can be updated to include higher years of earnings during a period of suspension. And, it doesn't matter whether or not spousal benefits were paid during the suspension, although the spousal benefit rate could also be updated each year to reflect increases in the worker's benefit rate.

Best, Jerry

Posted: 
Apr 23 2017 - 7:35am
MaxiFi software running on a laptop
Get What's Yours!
Discover tens of thousands in extra retirement dollars with Maximize My Social Security software!
  • Find your maximized strategy
  • Unlimited what-ifs
  • Step-by-Step filing instructions
  • Our software's lifetime-benefit increase for an illustrative couple earning $65K each and planning to take retirement benefits at 62.

    Results will differ based on your specific case and filing strategy.

Getting Started is Easy
Web-based software. Works on ALL browsers. No download.
$40 Annual Household License
$250 Annual Financial Advisor License