A recent article in the Journal of Financial Planning suggests a strategy spouses can use to maximize social security benefits. In a nutshell - wives should claim benefits at 62 and husbands should wait until 69.
Why?
Because the wife will be claiming benefits at the earliest age possible and adding those dollars to the household income for the longest time frame possible. A husband who delays benefits until age 69 is helping his wife by increasing the value of her survivor benefit. (This assumes the husband earned more than the wife during their working years, which is often the case.)
Caveats
If a wife and husband are about the same age and her benefit is expected to be about one-third of his benefit or smaller, this plan doesn't work as well. Both spouses should delay benefits in this case. Second, decisions about Social Security shouldn't be made in a vacuum. Couples have a variety retirement options.
Read the study at fpanet.org/journal. Click on "Past Issues and Articles" for June 2007
Source for Post: Wall Street Journal Online (subscription required)
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