Hi Larry,
My wife an I have a healthy combined income in the low six figures. She is 68 and I am 63. Neither of us have yet claimed any SS. She's healthy and planning to work until 70. I'm not as healthy and will work until 70 if able (I do enjoy my work) but may have to stop working FT at FRA for health reasons. My wife's monthly estimated benefit calculation at FRA is currently $1,318 and mine is $2,645. Both should continue to grow for as long as we continue working and paying into SS. I max out SS withholding, my wife does not. My goal is to maximize SS income for my wife in the long term while collecting what may be available to us now. Should one or both of us apply for SS benefits now, or when I reach FRA of 66, or should we both wait until 70?
Thank you,
Stan

Hi Stan,

In order to provide your wife with the maximum amount of monthly Social Security income for the long term you would want to wait until age 70 to claim your benefits. That's because in the event of your death your wife would be eligible for the higher of her own benefit rate or your benefit rate, so by waiting until age 70 to start drawing you would be providing her with her highest possible widow's rate.

While you're living, your wife could be paid the higher of her own benefit rate or 50% of your full retirement age rate, or primary insurance amount (PIA), although she couldn't draw on your record until you start drawing your benefits. It sounds like your wife's own benefit rate would be the higher of those two amounts, though, since she has already accrued delayed retirement credits (DRC) by waiting past full retirement age (FRA) to claim her benefits. If your wife started drawing at age 68, DRCs would add 16% to her full retirement age rate, raising her benefit amount to roughly $1528 based on the FRA rate stated in your question. If she waits until age 70 to start drawing, DRCs would add 32%, raising her rate to roughly $1739.

Remember, though, that the benefit rates I mentioned above depend on the accuracy of the amount stated in your question, and do not include any additional increases that may result from your wife's current and future earnings. There are also a number of other possible options that you may want to consider depending on your personal preferences. You and your wife should strongly consider using our software to fully explore and compare all of your options so that you can choose the strategy that you feel best meets your goals.

Best, Jerry