This is the first in a series of articles featuring Social Security claiming case studies drawn from the ALM publication "2025 Social Security & Medicare Facts," by Michael Thomas with support from Jim Blair, a former Social Security administrator, and Marc Kiner, a planning expert with extensive experience in public accounting.
The Scenario: Widowed With a Substantial Earnings History
Carl is a widower who was married to his deceased spouse for more than a decade, leaving him eligible for a survivor benefit of $1,866 per month based on his late wife’s earnings history.
Carl has the option to file for benefits as a widower and then switch to his own work record, no later than age 70. Alternatively, he can file on his own work record before his full retirement age and take the survivor benefit at his full benefit age.
Carl’s projected longevity is just past 85 years, and his full retirement age is 67, at which time his worker benefit will be $2,244. Should he wait until 70 to claim his benefit, the amount rises to $2,782.
He has five potential claiming strategies to consider, and the difference in projected lifetime benefits across the “best” and “worst” choices is well north of $200,000.
What the Numbers Say
The least effective claiming decision would see Carl file in January 2025 at age 61 and 7 months, giving him a reduced survivor benefit of $1,472. He then files in July 2025 at his earliest claiming age of 62 for a reduced worker benefit of $1,580, delivering a total projected lifetime benefit of $475,040.
A significant increase in the projected benefit comes from assuming that Carl instead waits to claim his survivor benefit. Instead, he files in July 2025 for his earliest claiming age working benefit of $1,580. Then, in June 2030, he files for the survivor benefit at his full retirement age, which would give him $1,886 per month. This strategy would deliver a projected lifetime benefit of $539,896.
A similar jump in projected benefits comes from assuming that Carl waits to file at age 67 for 100% of his survivor benefit, $1,886. Three years later, at 70, he files for his maximum worker benefit of $2,782, resulting in a total projected benefit of $624,296.
A small increase comes if Carl files at age 61 and 7 months for a reduced survivor benefit of $1,472. Then, in June 2030, he files for his own full retirement benefit of $2,244, resulting in a projected lifetime benefit of $625,264.
The best strategy would be for Carl to file at age 61 and 7 months for a reduced survivor benefit of $1,472. He then waits until June 2033 to file at age 70 for his maximum working benefit of $2,782, resulting in a projected lifetime benefit of $705,072.
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