Laurence Kotlikoff is a professor of economics at Boston University who has been answering questions and writing columns about Social Security each week for the past two years on PBS NEWSHOUR’s website. OpenRetirement has asked Professor Kotlikoff to post a Q&A each day from those columns. He has also developed software, called Maximize My Social Security, to help retirees secure the highest lifetime Social Security benefits. You can find the software here: www.maximizemysocialsecurity.com
Question: I turned 66 this year and filed for “spousal benefits” ($925). My husband is 76 and started Social Security when he was 65 ($1,740). I plan to retire in January 2015 but not claim Social Security until I reach 70, when I will earn $3,490. I am still working full time and hope to work “per diem” to earn a little to supplement our combined Social Security after January. Can I do any better?
Answer: If you can earn enough to raise your Average Indexed Social Security benefits, you can can still raise your age-70 retirement benefit and, thereby, raise your lifetime benefits. Also, if your 76-year-old husband is able to earn, he too may be able to raise his own retirement benefit and, potentially, the widows benefit you’ll collect after he passes away. If either of you can earn above the covered earnings ceiling, it’s a sure thing that you’ll raise your own retirement benefit and your spouse’s potential widow(er) benefit.
There are other ways to safely raise your retirement benefit, like moving to a state like Florida with no income tax, or optimizing the timing and type of your retirement account withdrawals. There is a free program my company provides that can help you explore these options.a
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When it comes to personal finance, economics and our software care about one thing—your living standard. All questions in personal finance boil down to your living standard. Your decision about when and how to take Social Security can affect your living standard throughout your retirement.
I am a professor of economics and I’ve spent a good part of my academic career studying personal financial behavior. Here’s why my colleagues and I developed Maximize My Social Security. Deciding, on your own, which Social Security benefits to take and in which month to take them is incredibly difficult. Most households face millions of options. You can easily lose tens of thousands of dollars making the wrong choices.
My company’s software, Maximize My Social Security, can help you avoid costly mistakes and instead discover your maximized lifetime household benefits.
