Social Security spousal benefit

[Brybo86]

parents are missionary's overseas
Dad is 66 has reached FRA and has paid into SS every year, plans to work a few more years mb till age 70 current benefit if taken is about 1800
most years he made about 30k, past 3 years he had made 45k
Mom is 62 has never worked or paid into SS.

Should mom take spousal benefit now? I believe dad could take and suspend his benefits until later. Would this reduce his amt later?
Moms spousal benefit is based on dad FRA 66 and I believe her spousal benefit does not increase past 50% of dads benefit at FRA 66

would mom taking spousal now decrease the amount dad could take at 70 versus 66?

how is the difference in benefit between 66 and 70 calculated, as i said before dad is making more now than he ever has, does that increase the benefit amt significantly?
is it last 3 yr average, last 5 yr average, total years average?

thanks

 

[skyactiv]

Where's Mr.Nice when you need him?

 

[Al]

Its simpler than that. Don't take any of it until you really need it. Its money in the bank..getting interest (bc you aren't taking it)
I realize I did not answer the question.

 

[compratio10_5]

If your Dad and Mom are in reasonable health and do not need the money right now, filing and suspending for your Dad's benefit is probably wise. For every year that he delays, his benefit increases about 8% per year which is a pretty good return in these times. You are correct that your Mom's spousal benefit limit is 50% of your Dad's full retirement age benefit. Her spousal benefit will be reduced by about 7% per year for every year (calculated by the month) taken before she is 66 and her benefit does not affect his. If your Dad dies before your Mom, survivor benefits which are the same as your Dad's actual retirement benefit will replace her spousal benefit. That is one good reason for your Dad to delay taking his benefit. SS benefits are calculated on the highest 35 years of social security wages adjusted for inflation so that does not make a huge difference if he has a long work history but helps a little with higher wages he now earning. I am sure there are others who can offer a more precise description but I believe this is generally correct.

 

[lukejo]

Originally Posted By: Brybo86
parents are missionary's overseas
Dad is 66 has reached FRA and has paid into SS every year, plans to work a few more years mb till age 70 current benefit if taken is about 1800
most years he made about 30k, past 3 years he had made 45k
Mom is 62 has never worked or paid into SS.

Should mom take spousal benefit now? I believe dad could take and suspend his benefits until later. Would this reduce his amt later?
Moms spousal benefit is based on dad FRA 66 and I believe her spousal benefit does not increase past 50% of dads benefit at FRA 66

would mom taking spousal now decrease the amount dad could take at 70 versus 66?

how is the difference in benefit between 66 and 70 calculated, as i said before dad is making more now than he ever has, does that increase the benefit amt significantly?
is it last 3 yr average, last 5 yr average, total years average?

thanks


It's based on his highest 35 years after each year is indexed for inflation. Re when each should file and on whom, they really should make an appt and go talk to a claims rep at SSA. Laws have changed in the last few years and there is a lot of misleading/outdated information out there. Also, how long they will be outside the US is another consideration to discuss with SSA.

 

[danez_yoda]

if hes happy doing his job. Keep it and delay ss.

 

[lukejo]

Originally Posted By: compratio10_5
If your Dad and Mom are in reasonable health and do not need the money right now, filing and suspending for your Dad's benefit is probably wise. For every year that he delays, his benefit increases about 8% per year which is a pretty good return in these times. You are correct that your Mom's spousal benefit limit is 50% of your Dad's full retirement age benefit. Her spousal benefit will be reduced by about 7% per year for every year (calculated by the month) taken before she is 66 and her benefit does not affect his. If your Dad dies before your Mom, survivor benefits which are the same as your Dad's actual retirement benefit will replace her spousal benefit. That is one good reason for your Dad to delay taking his benefit. SS benefits are calculated on the highest 35 years of social security wages adjusted for inflation so that does not make a huge difference if he has a long work history but helps a little with higher wages he now earning. I am sure there are others who can offer a more precise description but I believe this is generally correct.

That's correct factually, but the first sentence is not always the best advice. While it varies depending on one's benefit amount, for most people who delay taking their check until age 70.5 versus taking it at 66, they would need to live until their late 80's to break even...due to all of the money they missed out on from 66 to 70.5. And, they're not earning true interest on the money...it's not their money or interest if they die before it's paid out. If they can live without it, it's usually more wise to take it now and bank it. The only way they would regret that is at age 88 or 90 they wish their monthly check was a little higher.

 

[Lyman]

If Your father has reached full retirement age he should file. He can keep working and not lose any benefit. Your Mother cannot file for spouses benefits until your Father files. The rules changed and he cannot suspend and her keep getting the benefit.
https://www.thebalance.com/can-i-get-spousal-social-security-benefits-2894598

 

[ArrestMeRedZ]

Blkstanger is correct about your mother not being able to file until your father files. I turned 66 in August and researched this. File and suspend went away before I made that age - I am not eligible and I suspect your parents aren't also.

Your mother will get 1/2 of your father's SS amount if each of them wait until FRA to start. The later he waits after that, the more they will receive (8% increase for each year past FRA until he reaches 70). In addition to current benefits there is one other consideration. If he passes away before she does, her amount increases to what he is collecting - in this case if he waits until 70, she will get a survivor's benefit of 32% more than what she would get if he started collecting at FRA. Since she is younger, and women usually outlive men anyway, this is a significant consideration.

Single person, there can be an argument to take at FRA instead of waiting until 70 (if not working, there can be an argument to take as early as 62 depending on your tax situation and life expectancy). Married, especially to a younger wife changes the calculations significantly.