Wife (W) is receiving approximately $2,500 per month in SS retirement benefits, having started her benefits when she was 64 years 6 months so that her husband (H) could receive spousal benefits on her record. She is currently 67 years 2 months. H, currently 69 years 10 months, is deferring receipt of his retirement benefits until age 70 at which time he will receive approximately $3,700 per month, which includes deferred retirement credits (DRCs).

W is trying to figure out whether (i) to suspend retirement benefits from July 2021 – when she is 67 years 4 months – until the month she reaches age 70 to accumulate DRCs [with DRCs, her estimated retirement benefit at age 70 would be approximately $3,015 per month] or (ii) to continue her current retirement benefits of $2,500 per month.

In assisting W to make this determination, please confirm the following:

1. If H predeceases W, W will receive the greater of W’s benefit or H’s benefit. Since H’s benefit will always be greater, she would receive H’s benefit.
2. In determining whether to suspend or to continue her retirement benefits, W should take into consideration the fact that if H predeceases W, W will receive H’s greater benefit.
3. W’s following preliminary calculation appears reasonable: assuming a 3.6% COLA – which is conservative since this is the 2011 COLA and more recent COLAs have been much lower – and a corresponding 5% discount rate, H would have to live to approximately age 93 and a half for the choice to be break even. If H dies before that age, the preliminary conclusion is that NOT suspending produces a better financial result on a net present value basis.

Hi. I can confirm statements #1 & #2 are correct, but statement #3 includes assumptions about the future that may or may not turn out to be correct. More importantly, though, you've left out what is likely the most important factor that 'W' would need to consider before suspending her benefits. That is, that if 'W' suspends her benefits it will also cause 'H's' spousal benefits to be suspended (https://www.ssa.gov/benefits/retirement/planner/claiming.html). So, if 'W' suspends her benefits neither she nor 'H' would draw any benefits until either 'W' reinstates her benefits or 'H' files for his own benefits.

Best, Jerry