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One Spouse 65 has received SS since 62 has health issues and unfortunately may pass in 1-2 years. Other Spouse is 62 and healthy now and will get a SS check a little bit less than Spouse if taken at 62. Should the 62 year old take SS now, or wait.
Should the 62 year old wait and let theirs grow and take survivor benefits when 65 spouse passes? Then 62 year old takes theirs at FRA? Or, should 62 year old take the money and run now. LOL
It all depends on how much spouse 62 needs to live on. If they have 1 mil in the bank, the situation is totally different than if they have nothing in the bank. At the second scenario, an entirely new approach to retirement must be taken. It all depends on what their income and assets are now, what their burn-rate in their COL area is, and how much income the survivor has when spouse 65 passes. Without knowing any of this, any advice is useless.
It all depends on how much spouse 62 needs to live on. If they have 1 mil in the bank, the situation is totally different than if they have nothing in the bank. At the second scenario, an entirely new approach to retirement must be taken. It all depends on what their income and assets are now, what their burn-rate in their COL area is, and how much income the survivor has when spouse 65 passes. Without knowing any of this, any advice is useless.
I appreciate your reply. Answer: 62 year old doesn't need the money from SS and would be able to live the rest of life without it.
Not asking because of need. Don't want to leave any money "on the table". Question is in regards to which of the 2 scenarios would gain more money, or if the same in the end. Can 62 yo spouse hold off on their ss and let it grow and take survivors benefit in the meantime, than switch to theirs at FRA to increase their SS check which would be more than survivors benefit now. Since age 65 took SS at age 62, I believe the survivor benefit to age 62 yo is approx 70/80% of 65 yo ss?
My husband passed away last year, days before I turned 61. I could’ve taken survivor benefits right away, but opt to wait. According to the IRS website, I could take survivor benefits ay 60 and then switch to my own, or I could take my own no earlier than at 62, and then switch to survivor benefits. The one not taken first would be allowed to grow.
It really depends on which spouse earned more. Based on my calculations, I decided to file for my own reduced benefits at 62, and then switch to survivor benefits at 65. I could wait until 67, but mathematically, it’s not worth delaying until then.
For argument's sake, let's say both spouses made the same money during their career. I understand if one spouse was a sahm with a spouse that made most of the money there would be a different answer. This is not the case in my question.
So, "Can 62 yo spouse hold off on their ss and let it grow and take survivors benefit from a 65 yo in the meantime, than switch to theirs at FRA to increase their SS check which would be more than survivors benefit now". And, is this a good or bad thing to do?
I'm sorry if I'm not being clear with my question. Kinda new at this....
Hate to state the obvious; but, delay the one that will be the highest by 70. You don't get 100% of widow benefits until you are FRA. The best way to solve your problem is to actually do the math (stick it in a spreadsheet). Or, hire a fee for service CPA to take a look at the calculations for you. As a widow there are several different scenarios (because you can take the survivor benefit any time after 60).
I have a spreadsheet. If I take SS at FRA and die before about 79 I'm losing money. If I live to about 84+ then waiting to 70 would pay off (with a simplistic view of the benefits themselves and without some SWAG about how I would be able to make more money investing (mathjak)).
I cannot really adequately calculate the age 62 amount because I plan to work until FRA (so, that changes the SS amount). I actually could if I wanted to with the SS Estimator (I haven't gotten around to it and I need to save more cash so I'm not worried about retiring early).
One Spouse 65 has received SS since 62 has health issues and unfortunately may pass in 1-2 years. Other Spouse is 62 and healthy now and will get a SS check a little bit less than Spouse if taken at 62. Should the 62 year old take SS now, or wait.
Should the 62 year old wait and let theirs grow and take survivor benefits when 65 spouse passes? Then 62 year old takes theirs at FRA? Or, should 62 year old take the money and run now. LOL
Thanks!
Well, my husband died at 59. We were both 59. Your full retirement age collecting spousal benefits is different than your full retirement age normally. For me it accelerated about four months. My full retirement age is 66 and six months, before it was 66 and 10 months. When I went in to report that my husband had died and give them to death certificate and make sure his disability didn’t start, I was informed that 60 I would be getting $1800 a month in Social Security. For widows/widowers, we can take it at 60 if we need it . But if I waited until I was full retirement age, I would be getting almost 2900 a month. So I’m waiting.
This might not be the best time to call them, but they could give you actual figures and not just pie in the sky numbers. Since the guy is already taking SS, If she takes her Social Security now, when she goes to get spousal benefits she will lose her Social Security payment. I’m pretty sure you can get one or the other you can’t get both.
At least that’s how it was explained to me, which was fine because that’s how we planned it when we set up our business and put everything in his name.
Also, I was told that there is no benefit to waiting to 70 with spousal benefits. The amount that you get at your full retirement age is the amount that you get, which is unlike regular Social Security. She should possibly look at all of the numbers to make the best decision.
__________________ Solly says — Be nice!
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Solly says — Be nice!
