Suitability for Annuities plan

[somarco]

at this point, I can only recommend going back to work, or getting married.

What a pro!

 

[DHK]

I don't know her age, but can she claim a spousal benefit until claiming on her own earning record?

 

[bill3173]

What a pro!

Yes, thank you. There is Zero chance this case, if presented accurately to a carrier, would pass their suitability requirements, however, agents can fudge numbers to place a case like this, with non qualified money. I was curious as to what the competition would have done.

There was really nothing more to know than was stated in the opening homily: 0 income, and $100K total to draw down for living expenses = not suitable for annuity.

 

[Allen Trent]

I don't know her age, but can she claim a spousal benefit until claiming on her own earning record?

Are you sure? I am pretty sure that was one of the loopholes closed 5 years ago or so. I think the other was the file & suspend strategy where a working spouse filed to let the spouse claim 1/2 spousal & then working spouse suspending to keep building a larger benefit later

Maybe you meant a survivors benefit, not spousal benefit. That might still be possible to file at age 60 if a widow & then collect your own benefit at age 62. not sure on that though

 

[DHK]

Was never a loophole.

If both spouses have an earnings record, the higher earning spouse should delay. Assuming that's the client, the same client can still claim on their spouse's earnings record (or even a divorced spouse's earning record if they were married for at least 10 years).

It may only be a few hundred bucks a month, but that will help slow the drawdown of existing savings.

For example: My dad is 69 and will be 70 in December. My mom is 66. My mom's earning record is lower than my Dad's. My Dad will claim his social security when he turns 70 and my mom (at that time) will also get 50% benefit based on my Dad's earning record.

In the meantime, they are claiming Social Security on my mom's earning record and my Dad's spousal benefit based on my mom's earning record. It's far lower than when he claims at 70, but might as well claim it when it won't interfere with his maximum Social Security benefit.

 

[Allen Trent]

For example: My dad is 69 and will be 70 in December. My mom is 66. My mom's earning record is lower than my Dad's. My Dad will claim his social security when he turns 70 and my mom (at that time) will also get 50% benefit based on my Dad's earning record.

bad choice of words on my part as my parents utilized the file & suspend strategy because my mother kept working & had larger SS. My father got spousal benefits starting at 65 while my mother filed, suspended & delayed until age 70. that "strategy", not loophole is gone

but I also believe that the restricted application you mention changed for people born after 1/1/1954 & isnt a strategy anymore. I could be wrong. I thought you meant the client in this case could file for spousal benefit now & then later switch to her own SS record. That is the part I believe may have changed in 2015 or so.

Just located this after second guessing myself: Have I Lost the Right to Collect Spousal Social Security Benefits Before My Own? (investopedia.com)

 

[DHK]

Just located this after second guessing myself: Have I Lost the Right to Collect Spousal Social Security Benefits Before My Own? (investopedia.c

How Spousal Benefits Work Now
The new law did not do away with spousal benefits entirely. Even spouses who have never worked or contributed to Social Security are still eligible to collect benefits based on their spouse's (or, in some cases, ex-spouse's) work record. To do so, the main beneficiary must be receiving retirement or disability benefits, and the spouse applying for spousal benefits must be at least age 62.1


The rules for ex-spouses are a bit different: In their case, if the main beneficiary qualifies for retirement benefits but has not yet applied for them, the ex-spouse may be still eligible for spousal benefits as long as they've been divorced for at least two continuous years and meet certain other requirements.1


Spouses may begin collecting a permanently reduced benefit between age 62 and their full retirement age; the amount will be based on their own work record (if any) and their spouse's. If their spousal benefit would be higher than their own benefit, they will receive their benefit plus an amount equal to the difference. If they wait to collect until full retirement age, they will receive a spousal benefit of up to one-half of their spouse's full retirement benefit. In the case of spousal benefits, unlike regular retirement benefits, there is no incentive to delay past full retirement age.1

 

[Allen Trent]

Correct, but doesnt this say if you collect a spousal benefit it is permanent & that you cant later jump to your own higher benefit? I thought that was your original suggesting in the earliest post.

now I am second guessing my 1st second guess. LOL

I am putting a call in to Mr Biden to settle this once and for all so we are no longer confused

 

[DHK]

I am putting a call in to Mr Biden to settle this once and for all so we are no longer confused

LOL!

 

[LostDollar]

bad choice of words on my part as my parents utilized the file & suspend strategy because my mother kept working & had larger SS. My father got spousal benefits starting at 65 while my mother filed, suspended & delayed until age 70. that "strategy", not loophole is gone

but I also believe that the restricted application you mention changed for people born after 1/1/1954 & isnt a strategy anymore. I could be wrong. I thought you meant the client in this case could file for spousal benefit now & then later switch to her own SS record. That is the part I believe may have changed in 2015 or so.

Just located this after second guessing myself: Have I Lost the Right to Collect Spousal Social Security Benefits Before My Own? (investopedia.com)

I'm getting to the point where I have a hard time thinking stuff like this through. I think this (as well as your link) supports what you are saying, apologies if it doesn't.

Can I Start Spousal Benefits and Claim My Own Social Security Later?