Larry, Your software recommends that my wife start early retirement benefits this year when I turn 66 (she will be 62.5) and that I collect spousal benefits on her earnings until I reach age 70 (I'm the higher earner). At that point, it recommends that I begin collecting on my own earnings and she stops her benefits for 3.5 years at age 66.5 until she reaches age 70. Is this still allowed under the new laws? She missed all of the cut off dates. When she resumes her benefit, will it be at an increased amount? Will she have to pay back any of the benefits that she has collected thus far? What is this called - Suspending? Stopping? Thanks!

Hi,

Yes, the recommended strategy is still permitted. You can file a restricted application for only spousal benefits at full retirement age (FRA), then switch to your own record at age 70. Your wife must be drawing her retirement benefits in order for you to receive a spousal benefit, though, which is why the software recommends that she apply for reduced benefits when you reach FRA. You are still allowed to do this because you were born before January 2 1954, and are thus grandfathered under the new law on deeming (https://www.ssa.gov/planners/retire/deemedfaq.html).

When you switch to your own record at age 70, your spousal benefits will stop and your wife will be free to voluntarily suspend her benefits and resume them at a higher rate when she reaches age 70. People are still permitted to voluntarily suspend their benefits between FRA and age 70 under the new law (https://www.ssa.gov/planners/retire/suspendfaq.html), but the new law prevents anyone else (e.g. spouse)from being paid on the record while the benefits are suspended.

The above filing strategy is an example of what is referred to in Larry's book as 'Start-Stop-Start'. It would not be the best strategy for everyone, because each person and couple's situation differs. This is why we recommend using the maximization software on this site as a guide.

Best, Jerry