It’s tempting to think about retiring early and receiving seemingly infinite Social Security checks, but without the know-how you could end up leaving thousands behind
WINNERS AND LOSERS “Most people don’t understand the benefits” says Laurence J. Kotlikoff professor of economics at Boston University in an interview with Mishpacha. “This is the largest financial asset for virtually everyone. If you mess it up too bad.” (Images: Shutterstock)
Y
osef is a 65-year-old IT consultant while his wife Dina is a 61-year-old social worker. Yosef knew he could start collecting Social Security at age 62 but decided to wait as long as possible before claiming his benefits. After all Dina was still working and there were no kids living at home so the couple didn’t feel pressed for the income.
As she approached her 62nd birthday Dina got a letter from the Social Security Administration outlining exactly how much she would receive if she were to start her benefits. Like others in this situation Dina started to feel the “retirement itch.” Perhaps it was time to consider retiring from the agency she thought. And how nice if Yosef could do the same.
Dina and Yosef made an appointment with the Social Security Administration to learn more about their options. The representative told them how much they would each receive in Social Security benefits if they were to file right away — an amount far less than Dina had expected. However her spousal benefit wouldn’t be too shabby. The only catch was that if Dina wanted to take that benefit Yosef too would have to start taking his benefits.
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