Social Security

I’m not as dumb as I look.  But I have to confess that on the subject of Social Security, I’ve been like “duhhhhh.”  It’s just recently that I have started to give Social Security more than a passing glance.  And it’s like “Wow!”  While I have reached that magical “full retirement age” (for me – 66) where I can collect my full Social Security benefits and yet still work full time, I have decided to wait.  If I wait one year, I collect an added 8% annual benefit.  Waiting two years – another 8%.   Benefits go up 8% each year until age 70.  At that other magical age – 70 – there is no incentive to forestall collecting benefits. 

Now here’s something I didn’t know.   Donna has been collecting Social Security since age 63 since waiting – for her – would not mean much.  Now that we have reached age 66, she can collect benefits on my Social Security while I suspend collecting on my own.  That nearly doubles the monthly payout.  I could have actually applied for Social Security under Donna’s benefit but that would have delivered about $50 less per month than having Donna claim under mine.  And by waiting to collect on my own Social Security, the benefit continues to go up for Donna in the event I get hit by a bus while walking home from the train station.   Frankly the chances of that happening are not as great as me suddenly keeling over while sitting at the compute. . . . . (thud) . . . .  

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