Jack, 62 and Susan, 58 (Married)
ack and Susan have both spent a majority of their time in the work force and are blessed to each have a pension when they retire. They feel secure in how much they have saved for retirement and consider Social Security to be “icing on the cake.”
Because they can afford to retire, they are planning on electing Social Security at age 62 for both of them. With this strategy, over the course of their expected lifetime, they will collect a total of $924,616.31.
With this strategy, Jack and Susan are missing out on a lot of money. After meeting with us, they learned about the power of a restricted application and quickly realized they could be getting a lot more!
Here’s their maximized Social Security strategy:
Jack will wait and file for benefits at age 70. This allows his benefit to grow and Susan to collect a spousal benefit. Jack’s monthly benefit at age 70 is $3,312. When Susan turns 66, she will file a restricted application for only her spousal benefit’s based off of Jack’s earnings record. She will start collecting $1,254 per month, and let her benefit continue to growth. Then when Susan turns 70, she will switch over and start collecting her own benefit of $2,621 per month. Over the same life expectancy, they will collect $1,135,869!