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: My wife just turned 63, and we just set up her Social Security account and received her benefit statement, which says she is eligible for $773 at full retirement. She is older than I and brings in less income as a school teacher.
I just turned 57 and received my Social Security statement: at full retirement, I am eligible for $3,217. I still have a good eight years to work and raise my income and my Social Security 35-year earnings average. I am younger than my wife and bring in a much higher income. We are in great health.
What is a good Social Security strategy to maximize the survivor benefit, but also to provide my wife with some Social Security spending money when she does retire from teaching in three years? We did not plan to take any Social Security income early at 62.
Answer: Maximizing your household’s Social Security benefits likely entails your wife taking her full retirement benefit early and having you file and suspend your retirement benefit when you reach full retirement age. This allows you to wait until 70 to collect your own retirement benefit, inclusive of delayed retirement credits, and permits your wife to start collecting a spousal benefit on your earnings record when you reach your full retirement age.
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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.
