Question on Social Security

[jyl]

Question on Social Security.

Married couple. Husband 58 has worked for 38 years and will continue to do so through age 65, likely a good deal longer. Wife 60 worked for about 12 years then left workforce to raise kids. Both in good health, assume normal life expectancy. Trying to figure out ways to maximize benefits for the couple in retirement. Let me know if any of these are potentially workable.

1. Husband defers taking benefits as long as possible; that after he passes, his benefit that wife will receives is maximized.

2. Husband employs wife in his business; she resumes accruing income history for eventual benefit calculation.

[Crowbob]

The surviving spouse would get paid the higher of their retirement checks even if both worked.

[jcommin]

Crow is right

[jyl]

So for #2, need to estimate SS tax bite (and other costs of employing wife, like unemployment insurance premium, etc) vs increase in wife's benefit from start of benefits until husband's passing, to figure out if its worthwhile?

#1 still potentially makes sense though, assuming husband's life expectancy is long enough?

[Crowbob]

To maximize benefits, you need to maximize income(s) so that in retirement, each gets their own checks calculated on their respective incomes. When one passes, the survivor gets the higher of the two.

[jcommin]

I might suggest to go onto the SS web site and enroll. They have the work history and benefits - They provide estimates of the monthly amount at various ages. It might give you clarity in what you want to do. You can also call - they are very helpful with the process - they will not offer any financial advise.

[jcommin]

Originally Posted by jyl

So for #2, need to estimate SS tax bite (and other costs of employing wife, like unemployment insurance premium, etc) vs increase in wife's benefit from start of benefits until husband's passing, to figure out if its worthwhile?

#1 still potentially makes sense though, assuming husband's life expectancy is long enough?

I'm no longer married but if I had a spouse, I would have a plan in place to insure the retirement income would cover her thru her normal life expectancy. That in itself, is difficult to call because life gets in the way and the best plans can go sideways. You do the best you can.

[jyl]

Thank you all. This is helpful as I think through this issue.

BTW, I've been looking for a good financial planner who works on a flat rate or hourly basis, to refer questions like this to. No luck so far - the FPs I've found all work for (my) competitors or would want to build elaborate, expensive continuing relationships with (my) clients.

I've used some of the financial planning software packages in a former job, but have no interest in learning to be a financial planner myself, getting my CFP credential, or extending my insurance to cover financial planning services.

[Seahawk]

Originally Posted by jcommin

I might suggest to go onto the SS web site and enroll. They have the work history and benefits - They provide estimates of the monthly amount at various ages. It might give you clarity in what you want to do. You can also call - they are very helpful with the process - they will not offer any financial advise.

I concur.

The website is actually very good.

[hbueno]

https://opensocialsecurity.com/

[jyl]

Dang, they have my entire working history going back before I ever remember. A little scary!

[Sooner or later]

Originally Posted by jyl

Dang, they have my entire working history going back before I ever remember. A little scary!

It is fun to go back and look at what I earned.

In 1971, the year I graduated high school, I made $4,540 (minimum wage was $1.60)
I moved out on my own in 1973 while making $10,286 ( going to college full time) and had money to burn.

[Baz]

When I applied for my retirement benefits, I did so through the website. It was actually very straight forward and painless. I got a call a week later with a request that I go to the local office (20 minute drive) to finish the process.

The only reason for this is I had received survivor benefits after my father died for college, which ended at age 21. Just that alone threw up a flag.

The SS representative was a really nice guy. He said we just want to make sure you are who you are. The identification documents I brought with me helped, plus he quizzed me on a few things relating to prior residences and places of employment.

I didn't mind at all and appreciated that there was some vetting involved.

Since then, I have received a deposit into my checking account every 3rd Wed. of the month - last night's being the 26th.

Also, because I was already in the system, when I was eligible for Medicare, I was automatically enrolled. Didn't have to lift a finger. All of a sudden I got documents in the mail plus my Medicare card. I ended up getting a Humana medicare Advantage plan, so my SS benefit is dinged a very small amount each month to accommodate that plan.

I must say - our SS administration has done a wonderful job setting things up for us.

Good luck JYL.....hope you are able to get things set up the way you need......and don't hesitate to contact them, as others have mentioned. They are very helpful!

[Sooner or later]

When I signed up for Medicare and SS I didn't speak to a single person. A few verification questions. "Which of these phone numbers have you had in the past ", "Which of these street addresses...", "Mothers maiden name", and a couple of others. Nothing about past pets.

[rockfan4]

I pulled up my wage history and applied the Social Security Earnings indexing factor to it and got a bit of a shock. Well, not that shocked.
I've been working the same job for over 24 years now, and other than cost of living increases, I haven't had a raise in over 20 years. No wonder everyone is leaving for greener pastures. I'm too close to retirement to find something else, I guess I'll just stick it out for a few more years.

[tabs]

When I applied for SS the agent was laughing so hard that he could barley say that living in my Mothers basement didn't qualify me for SS...I replied, "But, but living with Mother for all those years was work."

After meting Mother he agreed with me and SS is now sending me my monthly check.. What a nice man that agent is.

[stevej37]

^^^ lol

[KFC911]

Never thought I'd see a penny from SS after paying in the max for years.... but boy did I get a surprise when I visited the SS site (and it is excellent imo).

I AM gonna get a penny starting next year!

.... in just two years... I'll have just enough to give my opinion about it all

[Norm K]

Originally Posted by tabs

.I replied, "But, but living with Mother for all those years was work."

Of course, it was pure bliss for ol' Mom ...

_