I understand how to calculate break even if I do not take widow’s benefit $ 1541 age 60 but took widow’s PIA $ 2156 at my FRA of 66 years 8 months. I don’t know how to calculate break even if I take my own retirement $ 915 age 62 and then switched to widow’s benefit $ 2156 PIA at my FRA 66 years 8 months. I know there are many other things to consider when to take social security, but I want take this in to consideration as well. I have read your book several times.
In addition, social security office tells me as a widow I can switch to my widow’s benefit at age 66 instead of my FRA 66 years 8 months. If this is true would I be taking a lower monthly $ reduced by 8 months or would I still get $ 2156?
Thank you for your help. My deadline for filing for widow benefit is 10/14/21, I am 60 now. I have spent several months trying to get accurate answers from social security but each person I talk to gives different answers. I have talked with social security agents and two claim representatives. I have not submitted an application yet.
Cary
Hi Cary. No. Widow(er)s born in the years 1955 through 1961 do have a different full retirement age (FRA) for widow(er) benefits than their FRA for Social Security retirement benefits, but if you start drawing widow's benefits before the month you reach your widow's FRA then your benefit rate will be permanently reduced for age.
If you were born in 1921 then your FRA for retirement benefits is age 67 and for widow's benefits it would be age 66 & 10 months. Age 66 & 8 months is the FRA for retirement benefits for people born in 1958, and it's the FRA for widow's benefits for people born in 1960.
We don't recommend basing decisions on when to start drawing benefits based on break even analysis. Here is an article that Larry wrote which explains why: https://www.pbs.org/newshour/economy/take-social-security-benefits-early....
Unless health issues are involved, if a person is potentially eligible for both widow's benefits and their own Social Security retirement benefits then it's almost always best to start drawing the lower of the 2 benefits as soon as you're able to collect benefits, and then switch to the higher of the 2 benefits when it reaches it's highest rate.
If your age 62 Social Security retirement benefit would be $915, then I assume your primary insurance amount (PIA) must be around $1300 and your age 70 rate would be around $1612. Therefore, if your unreduced widow's rate would be $2156 then it sounds like your best strategy would likely be to claim your own retirement benefits at age 62 and then apply for unreduced widow's benefits when you reach your FRA for widow's benefits. However, your precise best strategy would depend on whether or not you'll be working after age 62, and if so how much you'll be earning. You may want to strongly consider using our software (https://maximizemysocialsecurity.com/purchase) to fully analyze all of your options in order to determine your best strategy for maximizing your benefits.
Best, Jerry
