Signing up for Social Security at age 70 – which month??

Submitted by Bill Beeler on Tue, 2020-06-09 01:37

I have a client signing up for SSA benefits. He will turn age 70 in July. They are asking which month he wants to start benefits. To maximize benefits, which month should he choose? July??

Will his younger wife start receiving benefits based on his earning automatically? Thanks,



Submitted by William Tuttle on Tue, 2020-06-09 11:21

  • He could have applied starting in April for a July start. Since SS benefits are paid in arrears, his first benefit payment would be in August. With CV processing delays, the actual first payment could be delayed.
  • Make it clear you do not want retroactive benefits. A new enrollee can receive up to six (6) months of retroactive benefits. While the lump sum will be nice, your benefits will be permanently reduced as if you started receiving benefits at age 69 1/2. Negating the benefit of waiting the last six months.
  • His wife will only automatically start receiving 50% of his benefit if she is already receiving benefits and that amount is > her benefit based on her earnings. If she is not currently collecting she will also want to enroll for a July start and August first payment.

Submitted by Alan - IRA critic on Tue, 2020-06-09 14:24

  • Another very small one time benefit of NOT claiming retroactively is the loss of DRCs earned in the current year for benefits paid in the current year. If client makes the claim effective at 70, all DRCs earned in 2020 are included in the payments for the rest of 2020. If instead client make the claim retroactive, the lower DRC amount earned in 2020 is forfeited until 2021. Payments for 2021 forward will include all DRCs, but the loss of 2020 DRCs that are NOT paid in 2020 are never recovered. Again, this does not amount to alot and is a one time loss in 2020 only. 
  • In recent years, when claiming SS retirement benefits, the SSA always nudges people into retroactive claiming. While they should disclose this option, they seem to push somewhat beyond simply disclosing it.

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