"The good news is that neither of you is subject to the new deemed filing rules. So one of you will be allowed to collect “free” spousal benefits via a restricted application while delaying retirement benefits until 70.
The bad news is that both of you will be affected by the new rules regarding voluntary suspension. As a result, in order for one of you to be able to start receiving spousal benefits, the other would have to actually start receiving retirement benefits (rather than just filing and suspending).
Off the top of my head, here are two strategies to consider:
Strategy one: The lower-PIA spouse files for retirement benefits at full retirement age,[ WHICH IS WHAT YOU CAN DO NOW BB] and the higher-PIA spouse files a restricted application for spousal-only once they’re eligible to do so (i.e., once they have hit FRA and the other spouse has started retirement benefits). Then the higher-PIA spouse starts his/her own retirement benefit at age 70.
This strategy still allows the higher earner to max out his/her retirement benefit (thereby maxing out survivor benefit as well, if applicable), and it allows for a significant amount of “free” spousal benefits.
Strategy two: When you [ BB] reach age 70, you file for your retirement benefit, and your hubby files a restricted application for spousal-only. Then he starts his own retirement benefit at age 70.
This strategy allows both spouses to max out their retirement benefits, but it allows for fewer months of “free” spousal benefits."
EITHER of you can ONLY get spousal benefits when the OTHER retires and starts to receive THEIR retirement benefits, because your hubby is not old enough.
But currently under file and suspend…does the spouse collecting the spousal benefit need to be at full retirement age? I didn’t think so, but judging from these responses, I guess I’m wrong.
If someone born in 1953 or earlier applies to file and suspend for spousal benefits, does the age of the spouse matter? (let's say the spouse is only 40 years old).
If someome applies to file and suspend, can that person continue to contribute to retirement plans like 401K, IRA?
As soon as MaximizeMySocialSecurity.com updates its software, I’ll be plugging all my data in. I used that program in July 2014 to determine what our strategy should be in order to get the max. Now it’s a whole new ballgame.
(The software is excellent, btw, if anyone is looking for something like that. I believe it cost me $40 to use it and I think I now can use it forever.)
It appears to me that, under my circumstances, I have a choice of two New Plans:
New Plan #1: When DH turns 66, in January 2017, he will file and get his full benefit and I will get his spousal benefit. Then, when I turn 70 (November of 2018), I’ll file to receive my own max benefit.
New Plan #2: I file for my max benefit at age 70 (November 2018). At that time, DH files to collect his spousal benefit, which he takes until he turns 70 (January 2021) and then he gets his own max benefit.
I will have to run Maximize My SocialSecurity.com to determine which is best for us.
Facts: I turn 67 in about three weeks and have never filed for SS. DH turns 65 in January 2016 and has never filed for SS.
The Old Plan: When DH turns 66, in January 2017, I will file and suspend and he will get my spousal benefit while I wait until I turn 70 (November of 2018) to get my max benefit. Then, when DH turns 70 in January 2021, he will file for his max benefit.
Can we still follow this Old Plan or not?>>>>>>>>>
You need to do this in the next six months, including dh drawing spousal benefits. That is always going to be a set amount so doing it now changes nothing. (In fact, you should have filed and suspended at 66 already.)
That is my understanding of it.
I’ve been reading with interest. One question/comment: there is an earning limit of ~$15,000/year, after that amount SS benefits are withheld. So does it make sense to take spousal benefits if one is still working?
@VeryHappy : As @VaBluebird notes, you should file & suspend NOW. You do not have to wait for him to turn 66. As I noted above, I don’t think he has to be 66 – and he should still be able to file the restricted application for spousal benefits when he does turn 66. Then, you run everything out to 70. I think you’re in great shape. But, you CANNOT wait until January 2017 to file & suspend. And, if DH has to file for spousal while the file & suspend is still in effect (I;m not clear on this but I don’t think so) you’re probably better off taking the slight cut in the spousal benefit in order to get your foot in the door.
@mominva : the only reason I can see to file for spousal if it gets trumped by working wages would be if the claim has to be made in order to retain full rights to file & suspend down the road.
You need to do this in the next six months, including dh drawing spousal benefits. >>>>>>>>>
Doubting myself now. Perhaps dh also needs to wait for FRA to apply for the spousal benefits. You guys can still do this because you are > 62 y.o. by the end of this year.
I really don’t like giving advice on social security filing!! Be careful and find an authoritative source. This little tidbit is from the TRowePrice website and similar statements can be found elsewhere.
This would imply you do not want to file for a spousal benefit before you (the spouse) reach age 66 if you expect to file for your own maxed out benefit at age 70.
^ I think that comment is under the old rules. That was always true for file-and-suspend - you had to wait until FRA.
Under the new rules, my understanding is that (except for the edge cases over the next 6 months or so), no matter what age you file for spousal benefits, you are deemed to have filed for your own benefit, and you will get the higher benefit.
And you can still file and suspend, but now no one can make a claim based on the earnings record of the person who suspended.
If you turn 62 or older this year, you can still file a “restricted” claim and just collect spousal benefits while deferring yours until later, but the spouse must be collecting their benefit and not have suspended it.
"This would imply you do not want to file for a spousal benefit before you (the spouse) reach age 66 if you expect to file for your own maxed out benefit at age 70. "
that is my understanding.
as is my and DH’s new plan. We are both 63 now.
Instead of my getting ONLY spousal benefits when DH planned to file and suspend at age 66, I will be the one who
“retires” at age 66 and HE will be able to claim spousal benefits. Then HE will retire at age 70.
net, net- we will have more income than we had planned on for 4 years and slightly less income once we are both 70.
VH- If you WAIT for someone to update software, which could taker longer than 6 months, you WONT be able to file and suspend IF it turns out you still have that option.
Contact SS asap and DONT wait for a computer program to tell you what your options are.
Who wants to be the politician who votes for a tax increase, particularly one that affects higher income people who may be more prone to voting than others and who already complain about taxes?
