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If a husband retires at age 66 and collects SSI, then the wife, who is also retired can claim half of the husband's SSI. For example, if the husband collects $2,000 a month at age 66, the wife would then collect $1,000 a month.
Then the husband suspends his SSI, collects nothing, but his SSI amount increases at the rate of 8% per year when he starts collecting SSI again. If the husband starts collecting SSI again at age 70, then the husband's SSI would be 32% higher than it was at age 66.
Meanwhile, the wife would have continued to collect SSI at the rate of $1,000 a month for 48 months.
When the husband starts collecting SSI at age 70, can the wife switch from collecting half of the husbands SSI at the rate of $1,000 per month to her own SSI, which would have also grown much larger by that time?
If the wife takes half of the husband's SSI, is she locked into that rate of $1,000 a month for the rest of her life? Or, can the wife end half of the husbands SSI, $1,000 a month, and switch to her own SSI benefits, which would be much higher by that time.
If this is possible, then both the husband's and wife's SSI would have grown larger by waiting to collect, plus the wife would have collected $48,000 over the 48 months.
You are correct that if the husband files and suspends, his wife can collect one half of his reduced benefit at the minimum age of 62. Then he is free to allow his to grow and then collect the max at age 70.
IF his wife made less during her working years, this would be a good strategy and yes...she could collect an additional $48k while allowing her own benefit to grow. She can then, at 70, switch from her spousal benefit to her own full benefit and collect even more.
In this situation, I believe the only issue that could possibly arise would be if the wife made more than her husband and 'deeming' comes into play. If that is the case, (that 1/2 of her husbands reduced benefit is less than taking the entirety of her own reduced benefit) then the SSA will pay her the larger of the two...and in that case, she would have to take her own reduced benefit.
The more I research how to maximize the SSI benefits, the more complicated it seems. It made sense in the example I gave, which is probably the more common situation, where the husband is older and makes more income. However, in my situation, my wife is 3 years younger than me, but earns more than me.
No you cannot do that if I am understanding correctly
Social Security chooses which is higher, and you go with that amount. You don't get to choose. YOu can only choose to file or not to file.
If your own SS on your own accord is higher than 50% of your spousal benefit, you will be forced to accept that full amount on your own accord and forego his
Example- Your SS benefits on your own accord are $800
You follow your plan here, and when you feel ready, go file for SS.
First paid is always your own benefits which are $800 (for this example) then they will take $200 of your spouses benefits
to make up the $200 difference of the $1000.
They always want to use your money stored as part of your spousal benefits. Unless you don't file at all, then let yours grow and if it grows to under $1000, lets say 999, then only $1 will be part of your social security benefits
The more I research how to maximize the SSI benefits, the more complicated it seems. It made sense in the example I gave, which is probably the more common situation, where the husband is older and makes more income. However, in my situation, my wife is 3 years younger than me, but earns more than me.
I'm a big fan of Laurence Kotlikoff (professor of Economics at Boston University) and he has provided me excellent information regarding a specifically complex social security question I had about my own situation. His website offers access to free software (which might help) and he and Phil Moeller just finished writing a new book about this very subject. Cut and paste the link below to access a form to write Laurence directly. Hopefully, he will answer to provide clarity.
Are you referring to SS Retirement, or to SSI which is granted due to a disability? If someone retires, they're going to get SS Retirement benefits, not SSI.
That was confusing me too but some refer to regular ss as social security insurance but ssi is supplemental insurance for those with no work history or not enough quarters to get ssdi.
I think they are referring to regular ss but you never know.
Last edited by mathjak107; 03-10-2015 at 04:45 PM..
I am referring to normal Social Security retirement, which is about 4 and a half years from now. Although, my wife may retire before I retire. We both have pensions. My wife earns more, and will reach age 62 when I reach age 65, when I retire. Although she will retire before I retire. My full SS is at age 66. My wife's full SS is at 66.5.
I am still trying to determine how to maximize the Social Security benefits, but it's still not clear to me how to maximize the benefits. Perhaps the benefits would be higher collecting half of my wife's benefits, then suspend her SS, or the other way around.
I've also heard a different opinion from Dave Ramsey on SS benefits, that if you don't need SS to eat and to live on, then it is better to take SS early and invest it, rather than wait for a higher monthly distribution, by delaying the SS benefits. The theory there is you can earn more on the money in mutual funds, plus you start collecting the money sooner. We don't need to live on the SS benefits. We can probably live on two pensions without SS or the money in our retirement accounts, since we are used to living well below our means. The opinion also stated if you need SSI to eat and to live on, they you need to delay collecting SSI and work longer.
I just want to figure out the best way to maximize my SS income, even if it means taking SS earlier and investing it.
SS Retirement is not SSI. SSI is for disabilities, and isn't easy to get. SS is for retirement.
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