Ask Larry

Hi Larry.....I turned 66 in June, 2016 and my Social Security Disability switched over to my regular Social Security benefit of $682.00 a month. My husband's benefit after paying Medicare is $1,478.00 a month. I had heard I could apply for a spousal benefit and wait until 70 to collect my own Social Security benefit. I called the Local Social Security Office and they said no that it automatically converted to my regular benefit. Is this true and is there anything I could do to change it if is not true?

Thank You,

Carol

Dear Carol,

Social Security is both generous and nasty to disability benefit recipients. In the case of spousal benefits, they only provide excess spousal benefits. So you could suspend your own retirement benefit and collect your excess spousal benefit between now and 70 and then at 70 restart your retirement benefit at a 32 percent higher level than is currently the case. Your excess spousal benefit is the difference between half of your husband's full retirement benefit and 100 percent of your full retirement benefit. In your case, it sounds like it will be small, but positive. So it may be best to take your excess spousal benefit now, suspend your retirement benefit, and restart it at 70. Our software can determine if this is indeed optimal.

My best, Larry