Little-Known Social Security Collection Strategies:

As you move from your 50s into your 60s, you will likely need to make a choice about when to collect Social Security retirement benefits. Many people you know will fall back on the old adage "collect as soon as you can for as long as you can" and grab their benefits at age 62. However, in an age of increasing longevity and disappearing pensions, this may not be the most optimal, or even the most prudent, choice.

Did you know you can file for Social Security but maximize your benefit by delaying collection?

If you are married, the decision of when to collect Social Security benefits is more than just a question of longevity. You may be able to switch between individual, spousal and survivor benefits throughout your lifetime in order to maximize your Social Security income. Although each couple's situation is unique, you may receive higher lifetime benefits from adopting one of the two simple strategies below.

Both strategies involve "filing and suspending" at Full Retirement Age (the earliest age at which you can file and suspend). This strategy, also called filing and deferring, allows you to file for Social Security benefits, but defer your checks to a later date. As outlined below, filing and suspending allows a spouse to collect spousal benefits at an earlier date when the Higher Earner files for benefits at Full Retirement Age rather than waiting a planned collection age of 70. This strategy can enable a the Lower Earner to collect spousal benefits earlier while allowing the Higher Earner to maximize their benefits and, potentially, the survivor benefits they leave behind.

• Lower Earner files for and collects reduced individual benefits at age 62 (75% of Primary Insurance Amount).
• Higher Earner files and suspends at Full Retirement Age, allowing Lower Earner to file for adjusted spousal benefits.
• Lower Earner files for unreduced adjusted spousal benefits at Full Retirement Age (equal to 50% of Higher Earner's Primary Insurance Amount minus Lower Earner's Primary Insurance Amount).
• Higher Earner collects increased individual benefits at age 70 (132% of PIA). These increased benefits will be passed onto the Lower Earner as survivor benefits if the Higher Earner passes first.

• Higher Earner files and suspends at Full Retirement Age, allowing Lower Earner to file for "spouse only" benefits.
• Lower Earner files for and collects "spouse only" benefits at FRA (50% of Higher Earner's Primary Insurance Amount). This is possible even if the Lower Earner's Primary Insurance Amount is greater than half of the High Earner's Primary Insurance Amount.
• Lower Earner files for and switches to increased individual benefits at age 70 (132% of Primary Insurance Amount).
• Higher Earner collects increased individual benefits at age 70 (132% of Primary Insurance Amount). These increased benefits will be passed onto the Lower Earner as survivor benefits if the Higher Earner passes first.

Source: BlackRock; Social Security Administration.