“The Social Security file-and-suspend
strategy has been used primarily for couples to coordinate the delay of
individual retirement benefits (earning delayed retirement credits) while
making a spouse eligible to begin his/her spousal benefits. It can also be
used as a partial form of "undo" for a retiree who started benefits
early, and later wishes to suspend them (at full retirement age) to earn
delayed retirement credits (a benefits increase that can partially or
fully offset the decrease triggered by electing benefits early in the first
place).”
“However, the
strategy to file and suspend can also be used as a proactive planning strategy
for individuals, because it creates an opportunity for the retiree to
subsequently "undo" the decision to delay and
"retroactively" claim benefits back to the date they chose to file
and suspend (e.g., full retirement age). Thus, for someone who is approaching
age 66 and isn't certain about whether it's a good idea to delay or not,
choosing to file and suspend allows them to wait until age 70 to make the final
decision, enjoying the benefits of the delay if it still makes sense to do so,
but having the opportunity to go back and claim benefits at 66 if there's a
change in health or circumstances.”
Financial planner
Michael Kitces is one of the most brilliant minds in the industry. Read the details
of this SS claiming strategy on his Nerd’s Eye View blog: http://www.kitces.com/blog/why-individuals-should-file-and-suspend-their-social-security-benefits-reinstatement-of-voluntary-suspension-versus-retroactive-benefits/
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