Thank you for your question, my name is XXXXX XXXXX I will be happy to help you today
How are you doing?
Unfortunately, you cannot use file and suspend in early retirement. You can only use this when you reach full retirement age. It is to allow your benefit to grow to its max at age 70.
If your wife draws early, her benefit will be forever reduced. She will never be able to draw a full 1/2 of your benefit.
She could file early, but you could not draw a spousal benefit early. Your own benefit would then be locked at its age 62 total, and that negates any positive impacts of putting off retirement.
These methods are only good once you reach full retirement age, unfortunately.
I'm doing fine. Thanks for asking.
Thanks for answering my questions. Unfortunately they are not the answers
I wanted to hear.
I understand that they are not the answers you wanted to hear, but they will save you from making costly mistakes in drawing your benefits
But, I understand, if the age is 62, it's 62! Is there any other recommendation if we need to take benefits at 62?
Well, if you take benefits at 62 you are forever reduced.
If you need to take the benefits, they would be reduced. Your wife's entitlement to your benefit would only be 35% of your benefit, not the full 1/2
And, if she took her own benefit, and you waited until 66 to draw your benefit and she wanted to switch, there may be an increase in benefits, although she will not draw a full 1/2 of your benefits
Sounds like all options are off the table at 62.
Yes, early retirement limits your options unfortunately
If you are in good health, and plan on working until age 66, it's best to wait to draw. But, if you are in poor health or are going to stop working early it makes sense to draw early
There's not a "one size fits all" formula for social security - there are options.
But, those options are limited if you are under full retirement age.
If I wait until 66 what would my wife draw? If not 1/2?
Well, what she would do is take 1/2 of your benefit, and subtract it from what she would have drawn at full retirement age with no reduction. Then, she would take that result and add it to her current benefit
So, if she could get $1,200 off you, and would have had a full retirement age benefit of $1,000 but drew $750 early, you would take $1,200-$1,000 = $200 ; $750 + $200 = $950
Still more than what she was getting, but not a full 1/2 of your benefits
There is no benefit to this if 1/2 of your benefit is equal to or less than what she could have drawn at full retirement age.
Thanks for the information you've given me.
I will have to take this and digest! I will get back with you once I have thought this out.
No problem, it is my pleasure
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