'When I pass, all my retirement income is reduced to $30,000 a year'
"How do I balance the decision to draw sooner based on a potential cutback in future benefits?" (Photo subjects are models.)
Dear Quentin,
The news lately has been about the Social Security trust fund going broke in 2032. I'm now 67 and trying to determine when I should take Social Security. My wife and I have worked hard, saved and invested as much as we could. We consider ourselves fortunate for the position we're in.
I have a military retirement benefit as well as a state retirement benefit. I'm also a disabled veteran and receive a disability payment. All told, my income is around $140,000 a year. My wife works, but it's more her personal preference and doesn't generate any significant income.
I have a Medicare Advantage plan and Tricare for life. My wife uses Tricare as well. Medical costs, therefore, are largely covered. We both have long-term-care insurance policies, so we are on solid ground when it comes to our late-in-life coverage.
Our stock and mutual-fund portfolios, which include both regular IRAs and Roth IRAs, are at $2.5 million, depending on the market. We have about $600,000 equity in a house as well. We owe around $50,000 on two automobiles.
My wife is 62 and already started collecting her Social Security. It's worth $1,500 a month. If I start drawing Social Security now, it would be worth $3,000 a month. If I wait until my full retirement age, it will be $3,420 a month. If I wait until 2030, when I am 70, it would be $4,338.
The conundrum is that, when I pass, all my retirement income will be reduced to $30,000 a year for my wife, assuming she outlives me. How do I balance the decision to draw Social Security sooner based on a potential cutback in future benefits versus leaving the biggest payment I can give my wife if I pass first?
Our current income lets us live comfortably without relying much on the portfolio. We make occasional withdrawals for trips. The parents and grandparents on her side of the family have tended to live longer than the parents and grandparents on my side of the family.
Retired at 67
Related: 'I claimed Social Security at 62': At 76, I'm working at Walmart. Why do I still owe payroll taxes?
You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.
Assuming you predecease your wife, your Social Security payments will be more useful to her if you delay claiming than if you were to take them now.
Dear Retired,
It's a win-win whatever you decide.
In the event that you die before your wife, your Social Security payments will be more useful to her if you delay claiming than if you were to take them now. Given that your pensions and disability payments will drop to around $30,000 a year after your death, it makes sense to maximize your Social Security benefits.
A couple of reminders about the rules of survivor benefits: Your wife will generally be eligible for 100% of the Social Security benefit you were receiving at your death - provided she herself has reached her own full retirement age of 67 when she claims survivor benefits. So the amount you lock in during your lifetime, whether that's your benefit at 67 or your larger benefit at 70, is likely to increase the survivor benefit available to her.
The breakeven point for delaying until 70 will occur in your mid to late 70s, although the exact breakeven depends on your future cost-of-living adjustments, taxes and investment returns. By claiming benefits immediately, you would get over $23,000 over the next three years. If you wait until 70, your monthly benefit would increase to $4,338. If you die before reaching your breakeven age, claiming at 67 would give you a higher total benefit.
After your death, your wife can claim survivor benefits based on the Social Security benefit you were entitled to at your death, including any delayed retirement credits you earned by waiting until 70. As a result, if you delay claiming until 70, her maximum survivor benefit would generally be higher than if you claimed at 67. (In order to get spousal benefits during your lifetime - up to 50% of your benefits if that amount is higher than 100% of her benefits - she would have to wait until you claim.)
You already have enough money to live on. That $140,000 a year is a comfortable retirement. Plus, you have $2.5 million in IRAs and mutual funds. You don't say how much is in Roth versus traditional accounts, but it's a nice complement to your income. Because your current income already meets your needs, the stronger argument for you delaying Social Security would be to boost the guaranteed lifetime benefit available to your wife, rather than generating more assets to invest.
Double-check the terms of the survivor options of your military pension and state pension. Some pensions offer substantial survivor benefits if the retiree elected them at retirement, while others don't. The potential loss of pension income after your death strengthens - rather than weakens - your case for claiming Social Security later.
Don't miss: 'I get $1,460 in Social Security': My millionaire ex-husband, 74, refuses to pay alimony. What can I do?
A cautionary note on healthcare
A few words of caution on your healthcare coverage. Combining a Tricare for Life military healthcare plan with Medicare Advantage adds extra benefits like dental, vision and even gym memberships, but Medicare Advantage is the primary payer, so you don't get original Medicare freed from the shackles of networks. With Medicare Advantage, you must stick with an approved list of doctors and medical centers.
For those who may not be familiar with Medicare: Original Medicare is the government-run, fee-for-service program (Parts A and B) accepted by most healthcare providers. Medicare Advantage (Part C) is offered by private insurers and bundles hospital, medical and prescription-drug coverage (Parts A, B and often D).
More than 35 million seniors - roughly half of all Medicare beneficiaries - are enrolled in Medicare Advantage. An increasing number of medical centers are turning away Medicare Advantage patients for certain treatments because the reimbursement rates are too low to cover the cost of care. There is also a complex authorization process. Access varies widely by insurer and region
Family history is important when it comes to longevity, but it's not a zero-sum game. There's a lot you can do to make the most of your chances to live a longer life, including getting regular checkups, quizzing your primary-care physician about your bloodwork and, for men, getting your prostate checked every few years.
Finally, talk to your wife and your financial adviser. Whatever you decide, given your finances, your choices of claiming Social Security now or taking it later are both on the table. Whatever happens, the result won't be horrible. Congress has intervened in the past to prevent Social Security from running out of funds.
And as much as we try, no one can predict the future.
Related: 'We're worried the honey pot will run dry': Does the government borrow from my Social Security to fund federal programs?
The Moneyist regrets he cannot respond to letters individually. Check out The Moneyist's private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.
More columns from Quentin Fottrell:
'It's heartbreaking': My brother claimed Social Security at 70. He died from cancer after one payment. Why wait to claim?
'I'd hate to end up with an unexpected tax bill': I'm 73 and still work full time. Can I avoid paying taxes on my Social Security benefits?
'I've plenty of time on my hands': Advisers bombard me with offers of free steak dinners. Is it wrong to go for the food?
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-Quentin Fottrell
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July 14, 2026 08:30 ET (12:30 GMT)
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