2013
I am not an expert on Social Security, I don’t pretend to know all the many provisions, rules and regulations. In fact, Social Security is so complex I doubt any one person knows everything there is to know. Since adoption, Social Security has been “improved” many times, often adding benefits and options and, of course, adding to its cost and complexity.
It is now possible to manage ones benefit to receive maximum payments for participants, spouses, ex-spouses and children. You can even start one payment and later switch to a higher payment. Following is one example of the complexity and the amount of leveraging that can occur.
I can’t help but wonder if Congress over the years lost track of the original purpose of Social Security and in the process lost track of the financial viability as well.
The Wall Street Journal PERSONAL FINANCE June 16, 2013
Social Security—Call It ‘Married With Benefits’Social Security—Call It ‘Married With Benefits’
Joe is 64 and can expect to receive a retirement benefit of $2,000 a month when he reaches his full retirement age of 66. Mary, who is 62, is entitled to $1,600 a month if she works until her full retirement age, $1,386 if she takes early retirement at 64 or $1,000 if she opts to takes half of Joe’s monthly benefit.
Joe’s family tends to die early while Mary expects she’ll make it into her 90s.
Mr. Meyer recommends that Mary take an early retirement at age 64 and collect $1,386 monthly while Joe files for only a spousal benefit—receiving $800. (That is half of what Mary would have received had she waited. Joe gets the money because he is at his full retirement age.) When he turns 70, Joe switches to his own retirement benefit, which has grown to $2,640 and is what Mary will get as a widow’s benefit when he dies.
QUINNSCOMMENTARY 