How do you calculate the break even point/ payback analysis in deciding whether to claim SS under my own record at FRA of 66 or spousal benefit and then claiming my benefit at age 70? I will be 66 in December 2019. Per the SS rep, I would receive 1542 on my own record and 1307 would be the spousal amount. My husband’s health ( he is 76) is currently OK but he does have a few potential health issues.

Hi,

First and foremost, we do not recommend using break even analysis to decide when to apply for Social Security benefits. But, If you were born prior to January 2 1954 and based on the figures you cite, you should strongly consider filing for the lower spousal benefit at your full retirement age (FRA) and letting your own rate grow until age 70. Your own retirement benefit rate would then be 32% higher at age 70, so if $1542 is your potential age 66 rate your age 70 rate would be roughly $2035. Note, however, that I have no way of knowing if the figures cited in your question are accurate.

If your husband dies before you you would be eligible for the higher of a) his full benefit rate or b) your benefit rate. Therefore, it's possible that opting for the lower spousal benefit may not work out best for you in the long run if your husband dies before you reach roughly age 72. But, if he lives a long life you'll be thankful that you waited until age 70 to claim your own benefits. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully compare your options so that you can make an educated choice based on your assumptions about the future.

Best, Jerry