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Friday, December 31, 2010

Social Security Benefits Rejected??

I was taking a walk this afternoon when I met one of my neightbors.  We chatted a bit about his and his wife's planned move to their house in Sedona.  He indicated that "as of tomorrow morning, it will be 36 months to our leaving."  He added that he was 63 (unsolicited), and was waiting to collect his full retirement benefit from Social Security.  I chimed in about a benefit which I have in my own arsenal: He could apply for Social Security right now, at 63, and immediately suspend his benefits.  At 63, his benefits would be reduced, but his wife could collect spousal benefits for the next three years, based on his current benefits.  When he becomes 66 and applies again to collect his full benefits, his wife's spousal benefits are then stepped up to whatever she would be entitled to based on his full benefits.  Astoundingly, he said, No, we're fine just as we are.  She is making more money than I am, so we'll just wait.  Just wait?  This is essentially free money.  It is a benefit that he and his wife are entitled to.  Why not at least inquire to verify this information?

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