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Old 04-16-2016, 10:58 AM
 
486 posts, read 628,169 times
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I know there have been a lot of these kinds of threads here, inc. a recent one, but I have a specific question or 2:

I thought that one had to wait until FRA to take (ex)-spousal benefits, but after a couple of conversations with my local SS office, apparently not. The last guy told me that if I started taking S.S. this June (applying in May), I'd get $787 a month for spousal benefits. If I wait until age 66 (in Dec.), I'd get $827 a month. I was surprised he told me that over the phone, but I had my ex's S.S. #, etc.

Both amounts would be more than I'd get under my own earnings record, even if I wait until age 70.

If my math is correct, giving up 6 months of getting $787 a month=$4722. And it would take 9.8 years of getting the extra $40 a month if I wait until age 66 to make that up. I'm thinking it's not worth it to delay & give up the $4722? Can anyone see a clear reason for me to delay until FRA? (unless I live past age 76).

BTW, I was married for just over 10 years, now divorced for over 20. I have certified copies of both the marriage cert., & divorce decree.

Anyone see any flaws in this plan? TIA for any advice......
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Old 04-16-2016, 11:03 AM
 
Location: Central Massachusetts
4,800 posts, read 4,844,519 times
Reputation: 6377
Quote:
Originally Posted by WoodyWW View Post
I know there have been a lot of these kinds of threads here, inc. a recent one, but I have a specific question or 2:

I thought that one had to wait until FRA to take (ex)-spousal benefits, but after a couple of conversations with my local SS office, apparently not. The last guy told me that if I started taking S.S. this June (applying in May), I'd get $787 a month for spousal benefits. If I wait until age 66 (in Dec.), I'd get $827 a month. I was surprised he told me that over the phone, but I had my ex's S.S. #, etc.

Both amounts would be more than I'd get under my own earnings record, even if I wait until age 70.

If my math is correct, giving up 6 months of getting $787 a month=$4722. And it would take 9.8 years of getting the extra $40 a month if I wait until age 66 to make that up. I'm thinking it's not worth it to delay & give up the $4722? Can anyone see a clear reason for me to delay until FRA? (unless I live past age 76).

BTW, I was married for just over 10 years, now divorced for over 20. I have certified copies of both the marriage cert., & divorce decree.

Anyone see any flaws in this plan? TIA for any advice......
I don't see any flaws. I like you was thinking the same but if the SS office confirms than you should just go ahead. It isn't much of a difference per month and as you said it would take almost 10 years to make up the difference and the other go ahead. I especially agree if the income is needed now.
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Old 04-16-2016, 02:33 PM
 
Location: SoCal
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I'd take it so that you get paid in January for the whole tax year.
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Old 04-16-2016, 03:01 PM
 
71,501 posts, read 71,674,131 times
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i confirmed when i went to ss that between fra and 69 if you don't file in january you never recover the delayed credits not included in the years checks . you get adjusted going forward in january at the delayed credit rate but you never get back what was not included over the year in your check
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Old 04-16-2016, 03:25 PM
 
Location: Idaho
1,451 posts, read 1,153,447 times
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Quote:
Originally Posted by WoodyWW View Post

Both amounts would be more than I'd get under my own earnings record, even if I wait until age 70.

If my math is correct, giving up 6 months of getting $787 a month=$4722. And it would take 9.8 years of getting the extra $40 a month if I wait until age 66 to make that up. I'm thinking it's not worth it to delay & give up the $4722?
I think the key thing is that your SS benefit is higher than your own earnings record. If it is otherwise (like for me), one should delay collecting SS benefit until FRA then collect own SS with delayed retirement credits at 70. If I collect SS benefit before my full FRA, I can only get my own reduced SS benefit.

If you need the money, you should take it now.

If you don't need the money now, with the 'break even' age at ~76, you will get more if you think your life expectancy will be at the average or longer: $40/month or $480/year or ~ $4800 at 86.6.

https://www.ssa.gov/planners/lifeexpectancy.html

Quote:
A woman turning age 65 today can expect to live, on average, until age 86.6.
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Old 04-16-2016, 03:27 PM
 
Location: Idaho
1,451 posts, read 1,153,447 times
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Quote:
Originally Posted by mathjak107 View Post
i confirmed when i went to ss that between fra and 69 if you don't file in january you never recover the delayed credits not included in the years checks . you get adjusted going forward in january at the delayed credit rate but you never get back what was not included over the year in your check
Spousal benefit does not include delayed retirement credits of the spouse.

The OP is planning to receive spousal benefit so it does not matter what month that she collects the benefit.
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Old 04-16-2016, 03:31 PM
 
71,501 posts, read 71,674,131 times
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correct , i agree with the spousal side , i was just mentioning this fact since were discussing it in another thread and i said i would confirm what i believed to be the fact and it was .
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Old 04-20-2016, 10:46 AM
 
486 posts, read 628,169 times
Reputation: 1013
Quote:
Originally Posted by BellaDL View Post
I think the key thing is that your SS benefit is higher than your own earnings record. If it is otherwise (like for me), one should delay collecting SS benefit until FRA then collect own SS with delayed retirement credits at 70. If I collect SS benefit before my full FRA, I can only get my own reduced SS benefit.

If you need the money, you should take it now.

If you don't need the money now, with the 'break even' age at ~76, you will get more if you think your life expectancy will be at the average or longer: $40/month or $480/year or ~ $4800 at 86.6.

https://www.ssa.gov/planners/lifeexpectancy.html
My being male, the life expectancy calculator shows a life expectancy, at age 65 and 4 months, of 84.5 years.

So potentially--I could get approx. another $3840--in the future-- by waiting until age 66 to file. It doesn't seem worth it to give up the "extra" $4722 "up front". At best it seems like a "cr*ap shoot"--not clear cut one way or another.

I actually don't "need" the money right now, but getting an extra $4722 this year would be very nice. For instance, I bought a very nice house last year, after living in a "dump" for 30 years. But the backyard here needs backyard landscaping & a new patio, etc. Bulkhead door replacement for the basement. And so on.

I could "blow" the $4700 towards those projects, & enjoy it now, while "I'm still young enough". I'm relentlessly frugal, so maybe I could "loosen up a bit". There's also the psychic benefit of actually benefiting for once from that "marriage".....after the ex got so much......If I keep my appt. at SS on 5/10, & start getting $787/month; I'll be happy. I'm always the kind of person tho who's like, "I'll believe it when I see it".

And thanks for all the feedback.
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Old 04-20-2016, 11:03 AM
 
71,501 posts, read 71,674,131 times
Reputation: 49079
if a couple there is a 47% chance one of you will be alive at 90. that is almost a coin toss which is very high odds
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Old 04-20-2016, 02:42 PM
 
Location: Florida
4,358 posts, read 3,694,371 times
Reputation: 4084
If you are planning on dyeing before the 9.8 years go for it.
If you can get along with out the SS for 6 months delay and plan on living until 100.
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