What can I do if there’s a big age difference with my spouse?
The “Start-Stop-Start” strategy might help. Here’s how.
This Social Security tip deals with a variation of File and Suspend.
Start-Stop-Start may make sense if you are a married and there is an age and earnings difference between you and your spouse. For example, Sally is a 62-year-old high earner. Her husband, Joe, is 66-year-old and has earned less than Sally.
Sally files and starts collecting Social Security retirement benefits early (at age 62). This permits Joe to start collecting a spousal benefit immediately. Spouses aren’t eligible to collect spousal benefits unless the other spouse has started collecting their benefit or has filed and suspended.
When Sally starts at 62, Joe can apply for his spousal benefit at 66 and then wait until 70 to collect his own benefit, which will be at its highest possible value thanks to the Delayed Retirement Credit.
Four years later, at her full retirement age (FRA) of 66, Sally suspends her benefit. This allows her benefit amount to grow like Joe’s did, and then she can restart benefits at 70. Now her benefit will be 32% higher than what she was previously collecting.
Start-Stop-Start is complicated. Your decision of when to claim your Social Security benefits is important and will have a big impact on your retirement planning. There are many factors that impact your decision. You don’t want to do this alone, but should discuss it with a financial professional who can help you weigh all the factors.
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1-420032 9/16/2015
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All illustrations are hypothetical and are not representative of any individual’s specific situation.
