What is the “Claim Now and Claim Later” Strategy?
This strategy can be used in a variety of scenarios,but here’s one hypothetical example that illustrates how it might be used when both spouses have substantial earnings but don’t want to postpone applying for benefits altogether. Liz files for her Social Security retirement benefit of $2,400 per month at full retirement age, which is age 66, based on her own earnings record. But her husband Tim wants to wait until age 70 to file.
benefit amount, which is$1,200 per month. He then delays applying for benefits based on his own earnings record so that he can earn delayed retirement credits. At age 70, Tim switches from collecting a spousal benefit to his own larger worker’s retirement benefit of $2,772 per month. This is 32% higher than it would have been if he’d started taking his benefits at age 66. This strategy not only increases Liz and Tim’s household income, but also enables Liz to receive a larger survivor’s benefit in the event of Tim’s death. Contact us for an illustration of how this might work for you.