Social Security for couple with large age difference

Social Security for couple with large age difference

Dear Rusty: My wife is 63 and I’m 55. I’ve been the breadwinner for 37 years and draw almost $2,000 per month tax free from VA disability for life. I’m also still working until I’m 60 or 62, not sure yet, and will have a pension of about $1,900 per month.

Is there anything you can recommend on how to go about Social Security with the age difference? Signed: Younger Husband Dear Younger: With your VA disability benefit, your expected pension from work, your savings and your eventual Social Security benefit you are positioned better than many for your later retirement.

To start, please note that your wife’s full retirement age for Social Security purposes is 66 years and 2 months, while your full retirement age is 67, when you get 100 percent of what you have earned from a lifetime of working, but if you claim benefits earlier than your FRA, they will be reduced and if you wait beyond your FRA you can earn more. You cannot claim your Social Security until you are at least 62 years of age, but if you claim at 62 you will incur a 30 percent cut in the benefit you would be entitled to at age 67, and that is a permanent reduction.

Assuming your wife will be eligible for a spousal benefit from your record, since she will have reached her FRA whenever you claim benefits she can get up to 50 percent of the benefit amount you are due at your full retirement age.

But if she claimed her own SS retirement benefit before her FRA, her spousal benefit will be somewhat reduced. Your wife cannot get her spousal benefit until you start collecting your Social Security so that may be a factor influencing the decision of when you should apply. You can maximize your benefit by waiting to apply and earning delayed retirement credits which would yield a higher benefit for each year you delay, up to age 70. However, delaying would mean your wife can’t collect her spousal benefit until you start your benefits, so you should weigh the loss of her spousal benefit against the increase you get by delaying.

So, as you can see, there are numerous considerations when it comes to deciding when you should claim your Social Security, and you can evaluate which of those plans is most beneficial, considering your financial needs, your wife’s potential spousal benefit, and your anticipated longevity.

Russell Gloor

/nï

‘Ask Rusty’ By Russell Gloor