I am about to turn 62 this November. I am widowed and recently left a live in relationship to move into a property I own. I refinanced and am able to meet my monthly bills with my deceased spouses survivor benefit of approximately $1436. per month. I have worked as a family therapist for over 30 years but have been winding down my practice and can now only make income to the maximum of $1570 allowable while i am receiving the widows benefit. My broker has encouraged me to delay drawing my own SS benefit to age 70, rather spending down the cash i have in a savings account and then taking distributions from my investments. When i do draw my own benefit, am I then disqualified from receiving my widows benefit? Is it an either/or? I understand the if I remarry, I can continue to receive the widows benefit since I did not begin receiving it until I was 60. If I do remarry, can we opt to receive any of the others benefit in part? Is it ever a solid strategy to start receiving benefits at age 62?
Hi,
It's very likely that your best strategy is to wait until age 70 to file on your own record. Once you apply for benefits on your own account, you will receive only the higher of your own benefit or your widow's benefit. If you file on your own record at age 62, your monthly rate will be roughly 76% lower than the rate payable if you wait until age 70, and that reduction continues for as long as you live.
I can't think of a good argument for filing on your own account at age 62 if you're currently drawing widow's benefits. Why not let your own benefit rate grow while you are drawing widow's benefits in the meantime? Especially since you indicated that you are able to get by on the widow's rate that you currently receive.
As far as remarriage goes, that would not affect your widow's benefits, nor benefits payable on your own record. Potentially at least, remarriage could result in you or your new husband becoming entitled to additional spousal or widow(er)'s benefits at some point, but only if those benefits are higher than the benefits to which you're already entitled.
You may want to consider running the maximization software available on this website in order to confirm the best filing strategy in your case.
Best, Jerry