I just reached my FRA for SS, not collecting yet, so I checked into claiming spousal benefits from my spouse who has been collecting her benefits for 4 years. I was informed by SS my spousal benefit would be negated due to the Government Pension Offset law. I have a government pension from 30 years law enforcement career. I also worked PT and later FT earning SS credits so I do have a SS benefit. I know my benefit will be reduced by the WEP so have been holding off collecting to maximize the benefit. Since I cannot collect spousal benefit should I continue to wait until 70 to start my SS or start collecting now so at least my Medicare is paid? (there would be some left over each month after medicare) What strategy would you advise? my overall health is good but at 66 not sure if my life expectancy warrants further delay. Thank you.

Hi,

Even if your benefits will reduced for WEP (https://www.ssa.gov/pubs/EN-05-10045.pdf), there is still a 32% difference in what your monthly rate will be if you start at age 66 vs. age 70. If you do the math, you will find that it takes about 150 months or 12.5 years for the higher rate to make up for the amount of benefits passed up from age 66 to 70. In other words, if there are 2 people of the same age with the same options, and one starts benefits at age 66, and the other starts at age 70, the one starting at 66 will have received more total benefits until the time they reach age 82.5. After that, the one who started at age 70 receives 32% more per month for as long as he or she lives.

Larry feels strongly that break even analysis is the wrong way to decide when to start benefits. To read his thoughts on your question, refer to: https://maximizemysocialsecurity.com/tags/break-even-analysis.

Best, Jerry