Mary Beth Franklin writes a weekly Social Security tip column for one of my favorite magazines Investment
When looking at SS claiming strategies, wrapping our heads around the math can be difficult even with our knowledge and the software that we use. I was surprised to learn that there are over 2,700 rules that go into how much is paid from this important benefit program.
“Collecting early at 62 results in a permanent ~25% decrease in benefits, and waiting until 70 is a ~32% increase.”
“There's a 76% increase in benefits from waiting until age 70 versus 62.“
We tend to geek out about the math on delaying and coordinating benefits between spouses, but you often (not always) have to have to hit those breakeven ages to “win”! So I love this quote: "Delaying social security is a lot like the lottery, you must be present to win!"
Depending on your age, your full retirement age may be anywhere from 66 to 67.
If you want to collect on your ex-spouse's benefits, it must be at least ten years between "I do" and "I don't". They don't need to be involved in it, and it does not impact their benefit whatsoever. You would only have to work directly with the Social Security office.
Clients are also often shocked at the amount Medicare part B can cost. Here is a chart that shows current rates based on income.
As you know, there are a lot of different considerations, and we would be happy to discuss them with you if you're interested. We also have some neat tools available if you'd like to brainstorm for your specific Social Security benefit strategy.
Thanks for taking a look!
Tom Gartner, MSAPM, CFP®