Maximizing Social Security Benefits: Widow's Benefits vs. Delayed Retirement Credits

I have a client who is considering waiting to age 70 to draw her benefit. Her husband started drawing his benefit at age 66.  There are 9 years difference in their ages. He is currently 67 and she is 58. If she postpones this decision and he dies before she reaches age 70, is she able to draw off his and allow hers to continue to grow to age 70 or is she forced to start her benefit, which may be more than his, depending on what age this happens. She was a little bit larger wage earner than her was.

When planning Social Security strategies, especially for couples with an age difference, it's essential to understand how widow's benefits and delayed retirement credits can interact. Your client, who is considering waiting until age 70 to draw her own benefits, has a valid concern: what happens if her husband, who started drawing his benefit at age 66, passes away before she reaches 70?

Answer:

• If the husband passes away before your client begins drawing her own Social Security benefits, she has the option to start receiving widow's benefits based on her late husband's earnings record. This allows her to delay claiming her own benefit until age 70, enabling her to continue accruing delayed retirement credits, which increase her benefit by 8% per year beyond her Full Retirement Age (FRA).

• When she reaches age 70, she can then switch to her own Social Security benefit, which would have grown due to the delayed retirement credits. This strategy ensures she maximizes her lifetime Social Security income, especially since her own benefit may be higher than the widow's benefit.

This approach allows your client to make the most of her Social Security benefits, providing financial security even in the event of her husband's passing before she reaches age 70.

The content on this blog is for informational purposes only and is not legal, financial, or professional advice. Social Security rules change periodically, so some information may become outdated. For the most accurate advice, consult a certified National Social Security Advisor (NSSA®). Social Security Professionals, LLC, and NSSA® are not responsible for any errors, omissions, or actions taken based on this blog's content. Use of this blog does not create a client relationship, and all information is provided "as is" without guarantees. By using this blog, you agree to hold Social Security Professionals, LLC, and NSSA® harmless from any claims or liabilities arising from its content. For personalized guidance, contact an NSSA® professional.