You have to look closely at the actual benefits in the individual case. One possible example is for the younger, lower earning spouse to take spousal benefits sooner and switch to own benefits at 70. That is just a possible combination that could apply, but every couple has a unique combination of benefit entitlement and amounts.In regards to SS, I have heard this often:If SS is better than anything you can buy on the market, then I again ask, assuming the higher earner is already waiting till 70, what should one do next: Lower earner wait till 70 or buy an annuity?That is essentially an inflation protected annuity with a better return than anything on the market.
I understand the logic of the lower earner starting earlier (odds of one of the two dying early makes it better on average). But, longevity insurance needs to protect against more than just highest expected return. It needs to protect against reasonable outcomes such as both parties living a long life. As such, it just seems like having both spouses wait to collect is better than buying an annuity.
Statistics: Posted by dbr — Tue May 07, 2024 9:06 am — Replies 185 — Views 17837