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 husband Earl had to take an early retirement at the age of 54 because he had a stroke, and also started receiving his Social Security then. He died five years ago at the age of 62. I am 59 now and have always heard I have to be either disabled or 60 to receive his Social Security benefits. Is this true?
Answer: Yes, you need to be disabled to collect widow’s benefits early (indeed, as early as age 50). But since you aren’t disabled, you can’t collect a widow’s benefit until you reach age 60.
However, if you take your widow’s benefit then, it will be reduced. This may, nonetheless, be the optimal thing to do depending on your own work record. If, let’s assume, you have been a high earner, taking your widow’s benefit at 60 and your own retirement benefit at 70 may maximize your lifetime Social Security benefits. On the other hand, if you haven’t earned much in the past, it may be best to take your own retirement benefit early — at 62 — and then take your widow’s benefit at full retirement age when it will start at its largest possible value.
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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.
