NOTE: You receive about 8 percent less for every year you file early (starting at age 62), and the same increase for every year you wait until age 70 — the last year for which additional credits are available.
Higher-income people tend to live longer, so they stand to benefit from delayed filing.
Most often, couples will benefit if the higher-benefit spouse delays filing to earn delayed credits.
According to Jim Blankenship, a financial planner based in New Berlin, Ill., and author of “A Social Security Owner’s Manual.” “The idea is to get some income coming in early but also look at the cumulative lifetime cash flow,”
In situations where one spouse’s income is much lower — less than half of his or her mate’s — Blankenship suggests that the lower earner file at 62 (the earliest claiming age). At a later point, when the higher-benefit spouse files, the lower earner could be entitled to an increase from a spousal credit.
The Social Security Administration typically would bump up his or her payments automatically when the spouse files, although Blankenship advises contacting the SSA to make sure it happens.
Blankenship also advises couples to think about maximizing monthly benefits for the spouse most likely to live longest.
See Mark Miller’s full article here for more information.