In most cases, it is to your advantage to delay drawing Social Security benefits until you reach age 70. Your benefit amount increases by 8% each year that you wait to draw your benefit until you are 70. Of course, there are exceptions to every rule, or in this case a loophole that only applies to a few eligible candidates.
If you are not yet 70, but you were born before January 2, 1954, you could be eligible to file a “Restricted Application” on your spouse’s (or ex-spouse’s, in some cases) benefit. This means you would be filing for the spousal benefit (equal to half of your spouse’s benefit) while leaving your own benefit alone to continue growing until you reach 70.
In order to take advantage of this potential benefit, your spouse must be full retirement age (FRA) and already drawing his/her Social Security benefit.
Unfortunately, for those born after January 2, 1954 this filing method is no longer an option. Instead, anyone born after this date is typically deemed to be filing for all available benefits he/she is eligible for at the time of filing.
Social Security continues to be a complicated topic. If you would like to review your Social Security strategy and make sure you are maximizing this benefit, please schedule a meeting with one of our financial planners.