Social Security Strategy - Couple with a Primary Earner

Congratulations you and your spouse are getting ready to start receiving Social Security benefits. The question is what is the best approach to optimize the benefit.

Let me illustrate with my personal situation. My wife sacrificed her career to raise children so her Social Security benefit will most likely be based upon half of my benefit. When I die she will receive more money, my benefit instead of 1/2 of my benefit.

A strategy to get the maximum amount of money is for me to file and suspend Social Security benefits then continue to work. My wife will then collect her portion bringing in more money into the family. I continue to work which increases the amount that I will receive in the future. This is possible because of the Senior Citizens' Freedom to Work Act of 2000.

Why does this make sense?

1. My wife starts collecting benefits to bring in more money.
2. As my benefit increases, my wife's benefit also increases while I am working.
3. The total amount of money received each month is higher when I retire.
4. After I die she will receive a higher monthly payment.

The catch is that I need to keep working until age 70 to get the most money. I better work at something that I love to do. It is lucky that I have been blessed and I am doing what I love to do.