Larry, I am 63, married with 2 dependent kids ages 5 & 7. My wife is age 43. My questions are if I retire now what additional benefits might I pick up with 2 dependent children and wife?
If I die will my wife be able to continue with my full benefits and if so for how long?
Lastly, can I continue to work and make money and if so what impact will that have on my benefits?
Thanks in advance,
BP

Hi BP,

If you stop work and file for reduced Social Security benefits, your wife and children should also be eligible for benefits on your record. The upside, of course, is the extra benefits for them, but the downside is that the reduction you'd take is permanent, and can carry over to the rate of potential future widow's benefits for your wife. Also, there is a family maximum amount payable that will limit the total amount of benefits payable to your family.

Benefits for eligible children continue until age 18, or up until age 19 if they're still in high school. They can also continue indefinitely if the child becomes disabled prior to age 22. A spouse must have a child in care who is under age 16 or disabled in order to qualify, although spousal benefits can begin as early as age 62 without a child in care. And, widow's benefits can begin as early as age 60, or even as early as age 50 if the widow is disabled.

If you file for reduced benefits and continue working, the Social Security earnings test (https://www.ssa.gov/planners/retire/whileworking2.html) may limit the amount that you and your wife and children can draw until you reach age 66. Also, if your wife is working, the earnings test could be applied separately to her spousal benefits.

You have many different filing options to consider, so you may wish to run the maximization software available on this website. It will permit you to compare different scenarios, and show you the long term effects of the various filing options.

Best, Jerry