I am 75 and I will start getting my social security next month but my wife is 62 and working.?

Question

I am 75 and I will start getting my social security next month as I will be completeing my 40 points. But my wife is 62 and still working. Should she start on social security or wait till she is 65?

Answer 1

It boils down to 2 key questions, each of which reflects a different way of looking at the problem.

First, how long do you expect your wife to live. Assuming that her "normal retirement age" is 65, at 62 she will qualify for 80% of her "normal" age 65 benefit, but unless she continues workig ( to raise her SS earnings base) it will increase only with cost of lving. So, she will get a "head start" 2.4 years of benefits (3 x 80% of age 65 benefit).However, at age 65 that head start will be eroded by the 20% per year that she will not be getting. SO if we take 2.4 and divide by.2 (20%) it will take 12 years to use up the "head start". After that. the total payments will have been greater if she had waited til age 65 to begin drawing her Soc. Sec. From this standpoint, if she expects to make it to age 77 or longer, she'll be better off waiting till 65. If, for example, her health is not good or her family history tends toward shorter life expectancy one would think that beginning the draw earlier would be more sensible.

Second, do you need the additional income stream now, or will it be better held as an inflation hedge? What other resources do you have to provide a stream of income? Is any of it a pension of YOURS that would go away if you were to die? What effect would it have if she had gotten used to living on both your pension & SS plus her SS? Would it make a difference in her ability to make ends meet?

The second question, unlike the first, is harder to give a quantitative answer to based on the limited information you've provided. Hopefully, asking yourselves these kinds of questions will give you some help in resolving your original question. Good Luck & Happy Retirement!

Hank Roitman, EA
Sacramento, CA

Answer 2

There is no one correct answer to this question. You should contact a financial planner to review your complete financial picture to determine the best strategy for you and your wife.

However... you mentioned that your wife is still working. There is a very important rule that you will need to consider before making this decision.

Before you reach full retirement age (your wife will be at the Social Security full retirement age at age 66), if you collect Social Security retirement benefits while you are still working, you may be penalized and be required to repay part of your SS benefits.

If you are collecting SS and you are under age 66, then you are required to pay back $1 for every $2 you are over the earnings limit. The limit for 2007 is $12,960.

So although I can't tell you when your wife should start taking Social Security, I can tell you that if she plans on earning more than $12,960 in 2007 (or any year before she reaches age 66), she should NOT start taking her Social Security benefits yet.

I hope this helps. If you decide to work with a financial planner to help you with this decision, I would recommend a fee-only financial planner. You can find a fee-only financial planner in your area by visiting the Garrett Planning Network (www.garrettplanningnetwork.com) or the National Assocation of Personal Financial Advisors (www.napfa.org).

Answer 3

It's strictly up to you two. Sit down with someone at the Social Security office and see which would be the most beneficial.

Answer 4

in no way say no. each and every case is dealt with diverse and their regulations easily exchange from year to year. we've friends - the place the spouse is accumulating off of her husband Social secure practices. he's extremely alive - includes pass to and drives previous our abode daily. She replaced into working - she replaced into sixty one - she replaced into working to characteristic 1 / 4 to her very own earning so she may well be eligible to entice on her very own artwork record. She had a stroke - before her eligibility got here to bypass. She might desire to now no longer artwork - yet she replaced into able to entice on her husbands - as quickly as she grew to become sixty two. So - my suggestion to you - have her call the Social secure practices administration. that's the placement to inquire. it extremely is slightly stressful - once you call them. Have all your assistance handy - SS # - delivery dated - different retirement assistance - (medicare card and coverage enjoying cards - purely in case) pen and pencil and paper handy. do no longer provide up! you will might desire to attend and wait and push the numbers on your telephone - repeatedly - yet carry in there - finally they are going to connect you with the appropriate individual. they might furnish you with a decision lower back - time and date for a telephone appointment - so which you will call them or they might desire to call you on the date of your telephone appointment. We offered a speaker telephone - with super numbers - purely so the the two one human beings may well be there to respond to questions. This telephone works super while coping with SS and our coverage too. i do no longer comprehend if the exchange of the - 'new age' - of retirement has long previous into result yet - they are able to have the skill to make it easier to comprehend - if the age has replaced for 'your' subject. stable success and terrific needs. DeeJay.