Liz Weston: Right here’s an instance of when delaying Social Safety till age 70 is probably not your best option
Pricey Liz: My ex-husband is 13 years youthful than I. We had been married for 10 years and he earns greater than I do. If I begin drawing my very own Social Safety profit at age 70, can I swap to his profit after I’m 75 and he’s 62?
Reply: Usually when somebody applies for Social Safety, they’re “deemed” or assumed to be making use of for all the advantages for which they’re eligible. Should you’re eligible in your personal retirement profit in addition to a divorced spousal profit, for instance, you’ll get the bigger of the 2 quantities. You wouldn’t have the ability to swap from one to the opposite later.
There are just a few exceptions to this rule, nevertheless, and your state of affairs is one among them. You received’t be eligible for a divorced spousal profit till your ex-husband reaches minimal retirement age (62). At that time, you’ll be eligible for 50% of his main insurance coverage quantity, or the test he would get at his full retirement age, which is presently between 66 and 67. If that quantity is bigger than what you’re receiving, you can swap.
Should you’re going to modify, although, you might not wish to wait till 70 to use in your personal profit. Delaying is smart for most individuals, as a result of they’ll stay previous the break-even age of their late 70s when the bigger worth of the delayed profit greater than makes up for the smaller checks they move up within the meantime. Should you swap at 75, although, you received’t have acquired your personal advantages for lengthy sufficient to make up for bypassing the smaller checks, says Dr. William Reichenstein, head of analysis at Social Safety Options.
Deciding when to start out Social Safety may be difficult even in easier conditions than yours, so think about using a web site similar to Social Safety Options or Maximize My Social Safety for recommendation on when to say.
Liz Weston, Licensed Monetary Planner, is a private finance columnist for NerdWallet. Questions could also be despatched to her at 3940 Laurel Canyon, No. 238, Studio Metropolis, CA 91604, or through the use of the “Contact” type at asklizweston.com.