I think the higher wage earner in a couple waiting till 70 to take SS is more “longevity insurance” than trying to maximize absolute benefit amounts. SS is essentially an annuity that increases 8% pa between full retirement age and 70 and then increases by cost of living adjustments going forward. Waiting till 70 maximizes the amount a surviving spouse will have and is especially pertinent if one of the partners has much higher benefits than the other. Of course, the majority of people drawing SS need the money asap so a moot point for them.
7 Likes
I realize most luckily will not be in my situation, but both my husband and I had planned to wait until 70 to collect. We really didn’t evaluate how and when, just decided to wait.
Husband got sick shortly after I turned 66; my full retirement age would have been at 66 1/2. Our CPA suggested I go ahead and apply for my SS so that I would at least have some money coming in as we both stopped working. I think I waited a few months, just because I didn’t want to deal with it. Finally got around to it at 66 1/2 and was approved around the time he passed away.
I ended up receiving his SS, which was much higher than mine, after a month and some back payments we still can’t figure out. He was the higher earner as I did not receive a paycheck when I spent years working in his practice before my more recent job. This made my work history earning very small on paper.
Not really sure my reason for posting as I lost my train of thought! 
Just think through all possibilities when making your decision.
9 Likes
Right. Another way to say that is that it is trying maximize the couple’s total benefits…. ensuring that whichever one lives longer can receive that higher benefit.
3 Likes
I think your point is that we never know what life is going to throw at us. And to remember that having the luxury to decide when to draw social security is a blessing.
18 Likes
I planned to take SS at age 70 but we wanted D to be able to apply for disability so I had to take it so she could apply. It was fine and didn’t matter much. The amount I collect was never calculated into our budget.
2 Likes
My thinking is like @kelsmom. If I die before my break-even age, my DH or kids will get less because I didn’t bank that money. But my parents both lived into their early-mid 90s. If I make it beyond the break even, I will be glad to have the extra defined income, especially if we go through a market downturn. Ultimately, for most people, it really doesn’t make that difference if you take it at your FRA or wait.
2 Likes
OP here. I would just like to add I’m totally ticked off. Medicare Prescription D had us at a $57 per month (each of us) premium add on because of DH’s Salary. Plus a $540 deductible for each. I only paid $350 for my meds in their entirety this year. DH pays $12 per month fir his thru Kroger RX. What a racket.
3 Likes
It is one way that these programs can keep going. Those that have the means pay more to offset what others can’t pay.
6 Likes
You’re correct. It’s just frustrating as we will be paying more in Medicare premiums than we do on DH’s healthcare at work. The company only subsidizes staff. The only thing that we will benefit from is not having to pay medical expenses anymore. But it’s still a hard pill to swallow, when for years we thought we’d get a break when we got to 65.
3 Likes
Is your husband still working and you both have access to his healthcare through that employer? If so, I don’t believe you need to take Medicare yet. Is that your case?
I do get the frustration of having to pay more.
1 Like
This is our situation. H still working and both of our insurance through his employer. He has not yet taken Medicare.
The general advice is to sign up for Part A, hospitalization, as it’s free. However, one can’t make HSA contributions within 6 months of that. (someone please correct if I’m wrong) Therefore, we continue with the HSA and he hasn’t signed up for Part A.
2 Likes
Yes, you’re correct about the six month rule. It’s the case for both Medicare A and B.
1 Like
Yes, but there is a $5k deductible for each of us. With Medicare, it’s only $240 and medigap pays for that. After premiums we shouldn’t have to pay a dime.
1 Like
None of the Medigap policies currrently available cover the part B $240 deductible. Plan F did but it is not open to new participants.
2 Likes
We are doing the most comprehensive plan G and our agent told us it did. I guess I’ll find out.
Edit: their own website say they use info from the IRS to determine the part B expense. So not clearly might fault perhaps.
Oh no, I already goofed up when signing up for Part B. It made mention of what MY income would be (I’m retired, only have a tiny amount each year from reselling, under $15k). Since I put down I have insurance thru my husband (who also signed up for B), they would look at his income.
Stupid stupid me. So now they are just charging me $185.
I have to call today and hopefully they will change it before it begins in January and they can take the right might out of my social security.
When I was filling it out, I thought it would say something like “if you’re married and filed together”.
1 Like
This is the Part B minimum premium, isn’t it?
Yes. On hold with SS right now. I called Medicare and they told me to contact SS. Their own website says they obtain tax info from the IRS to determine IRMMA. So why didn’t they? Grrrr.
Anybody get an e-mail from no-reply at ssa dot gov?
I didn’t realize some people opt out of paper mail. Now SSA says,
“ Your Social Security Statement is streamlined and easier to read than ever before. That is because we have redesigned the Statement to provide you the most useful information up front and at a glance.
We encourage you to check your Statement at least once a year to review:
- Your earnings record (to make sure it’s accurate and notify us if you see any errors);
- Your personalized monthly retirement benefit estimates (which now display how much you can expect to receive depending on when you decide to start your benefits between ages 62 and 70);
- Other useful information that will explain your benefits and help you prepare for your financial future; and
- New fact sheets that provide additional information based on your specific age group and earnings situation.
You can access your new Statement by signing into your account at socialsecurity .gov/. reviewyourstatement
Edited link so it doesn’t connect.
Now that you can access your Statement instantly and anytime online, we will not automatically send one by mail.
We hope you find your new Statementuseful and informative.
that kind of email always makes me leery … don’t click links, type in the url. or just go to your normal starting point for SS login
6 Likes