I realize you have a question about social security. My goal is to help you better understand your options.
How are you today?
Yes, marriage is financially sensible considering your social security benefits
If you are married, she should take her benefit at age 66 which is her full retirement age - that way she gets a full 50% of your benefit
Of course you are one year younger than she is, so she could draw her own benefit for one year once she reaches full retirement age and then switch once you file at your full retirement age
You could then, at your full retirement age, file for your benefit and then suspend
do i then get my full 30% more at age 70 if i file at 66? what happens to her benefit? should i up her salary to increase her benefit or is it a waste?
If you file at 66 and suspend your benefit, then when you turn 70 you will get your maximized benefit. Her benefit is 50% of your age 66 benefit
If you pay her more now, her benefit could increase but it will be minimal
we won't need the money, so she can wait to file until 70. the would i have to file and suspend at 69?
Yes, you would file and suspend at 69 to get your full benefit at age 70
In the meantime, she can draw her own benefit starting at full retirement age, and then at age 69 when she switches she will get the higher benefit
And, at full retirement age you could draw 1/2 of her benefit while your benefit grows
can she file at 62 and then get the higher rate when i file?
No, she has to wait until full retirement age
and we would pay taxes on all this
On 85% of it
you're good . i expect we
Until you are done working, at that point if social security is your only income you won't owe tax on it
'll have around 2 million in retirement 401k at 70 1/2. will that cause tax liability on ss income?
Yes, if you are drawing from your 401(k) then a portion of the benefit could be taxable
There's a link to a calculator that will tell you how much of your benefit is taxable
so summarise. what would you do in this situation?
At full retirement age, I would have your wife draw her own benefit
At your full retirement age you would draw 1/2 of her benefit
then when you are 69 file and suspend your wife will get a higher spousal benefit
then at age 70 you draw your higher benefit
you've been very concise. thank you
You're welcome. If you would, please rate my response as "excellent" so that I may receive credit for assisting you today