My Wife and I Just Used the File-and-Suspend Tactic to Boost Our Social Security Benefits
If you’ll be 66 by April 30, you owe it to yourself to see if this disappearing claiming strategy makes sense for your family.
"Aw shucks," or words to that effect, came out of my mouth last November 1 when I learned that Congress had voted to abolish the file-and-suspend Social Security claiming strategy we at Kiplinger had been recommending for years. Selfishly, my discouragement grew in part from the fact that I was just five months short of being able to put the strategy to good use for my family.
Buy Now: Kiplinger's Boomer's Guide to Social Security
My spirits brightened, though, when it turned out that a last-minute, dead-of-night change in the legislative language meant file-and-suspend would still be allowed for anyone who turned 66 in the six months after President Obama signed the law. Since about 10,000 Boomers turn 66 every day, that means about 1.8 million people would age into an opportunity that could boost their families' lifetime Social Security benefits by tens of thousands of dollars.
I am among those who slipped through the closing window.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
I knew I didn't want to claim Social Security benefits when I hit 66 this March. I'm still working and I want to delay claiming as long as possible, until I’m 70, to collect those luscious 8%-a-year delayed retirement credits. But I also knew that file-and-suspend would let me open the door to spousal benefits for my wife, Anne.
She claimed her own benefit when she retired a few years back. As a modestly paid social worker and teacher's aide who took many years out of the workforce to raise our children, Anne's benefit is a modest $672 a month. But when I filed (and immediately suspended), Social Security quickly advised her to file for spousal benefits based on my record.
That move boosted her monthly benefit by $620, bringing it to $1,292, 50% of my age 66 benefit amount. Over the next four years, that will pour nearly $30,000 into her checking account (a bit more, really, thanks to cost-of-living adjustments in the future). And, those delayed-retirement credits will push my benefit from $2,584 to over $3,400 a month if I successfully hold to claiming until I’m 70.
That's the value of file-and-suspend to my family.
If you’ll be 66 by April 30, you owe it to yourself to see if this disappearing strategy makes sense for your family. To help, we've just completely updated our popular Boomer's Guide to Social Security for 2016. It includes a brand new, step-by-step guide that I created – based on my experience -- to show you exactly how to take advantage of the file-and-suspend strategy. The deadline for doing so is Friday, April 29, so time is running out. If you’re eligible, now’s the time to act.
Buy Now: Kiplinger's Boomer's Guide to Social Security
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Should You Renew Your CD?With rate cuts impacting earnings, we examine if now is a wise time to renew CDs.
-
7 Ways to Plan Now to Save on Medicare IRMAA Surcharges LaterUnderstand the critical two-year lookback period and why aggressive planning before you enroll in Medicare is the most effective way to minimize IRMAA.
-
457 Plan Contribution Limits for 2026Retirement plans There are higher 457 plan contribution limits in 2026. That's good news for state and local government employees.
-
Medicare Basics: 12 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2026SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $70,000 in 2025, and up to $72,000 in 2026.
-
Roth IRA Contribution Limits for 2026Roth IRAs Roth IRAs allow you to save for retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2026 limits and income-based phaseouts.
-
SIMPLE IRA Contribution Limits for 2026simple IRA For 2026, the SIMPLE IRA contribution limit rises to $17,000, with a $4,000 catch-up for those 50 and over, totaling $21,000.
-
457 Contribution Limits for 2024retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2026retirement plans The Roth 401(k) contribution limit for 2026 has increased, and workers who are 50 and older can save even more.
