Btw make sure your husband has all his documents ready. They're super strict about that stuff. Birth certificate, marriage license, the whole deal. My application got delayed 2 months cuz I didn't have right papers.

One thing to keep in mind is that when your husband files his application, he should specify February 2025 as his desired start date to make sure he gets that first payment in February. Sometimes people accidentally select dates that push their first payment back a month. The SSA processes applications pretty quickly these days, but it's good to file at least a few weeks before you want benefits to start, especially if you're doing it online. Also, since he's claiming before his FRA, make sure he understands the earnings test if he plans to work at all after claiming - that can affect his benefits until he reaches full retirement age.

A few additional points that might help your sister: 1. Her benefit amount will be approximately 41.7% of her ex-husband's PIA if she files at exactly age 64. For each month she waits after that (until reaching her FRA), the percentage increases slightly. 2. If she was born in 1961, her Full Retirement Age is 66 and 10 months. Waiting until then would give her the full 50% of his PIA. 3. Very important: If her ex-husband hasn't filed for his own benefits yet, she can't receive ex-spouse benefits until he becomes eligible (age 62), even if she's already past that age herself. 4. The estimate you're giving her of $2,000+ might be too high. Even with maximum earnings, the highest spousal benefit for someone reaching FRA in 2025 is around $1,800-1,900. With six-figure earnings but not at the maximum taxable amount every year, a more realistic estimate might be $1,400-1,700 at FRA, and less if taken early. 5. The phone interview will give her exact numbers based on both their earnings records, which will provide much better clarity than our estimates here.

One thing I haven't seen mentioned yet - your sister should also ask about Medicare eligibility during her phone interview. Since she's 64 and losing her alimony income, she may qualify for Medicare Part B premium assistance programs like QMB (Qualified Medicare Beneficiary) or SLMB (Specified Low-Income Medicare Beneficiary). These programs can help cover Medicare premiums, deductibles, and copayments based on income limits. When her financial situation changes after the alimony ends, she'll want to make sure she's getting all the healthcare cost help available to her. The SSA representative can provide information about these programs or direct her to the right resources.

Based on all the discussion, here's a summary for your sister: 1. Applying in January for January benefits avoids the 2023 earnings test completely 2. The severance package counts as earnings in the year received (2023) 3. If she applies for any 2023 months, she'll likely see most or all benefits withheld due to her high earnings 4. While withheld benefits are eventually factored back in after FRA, it creates unnecessary complications 5. She should consider the early claiming reduction (about 20% at age 64) in her overall planning She should definitely apply 1-3 months before she wants benefits to begin, so if she's targeting January, she should start the application soon.

One thing I haven't seen mentioned yet is that your sister should also consider whether she wants to elect to have federal taxes withheld from her Social Security benefits when she applies. Given her high 2023 income, she's probably used to having taxes withheld from paychecks, and SS benefits don't automatically have withholding unless you request it. She can elect 7%, 10%, 12%, or 22% withholding on Form W-4V when she applies. This might help avoid a big tax surprise next April, especially since up to 85% of her benefits will likely be taxable. Just another timing consideration for her planning!

That's right, there's no benefit increase for delaying past 70. In my case, I'd be getting 3.5 years of delayed retirement credits if I wait from my retirement at 66.5 until 70. It's the sweet spot of getting the maximum possible benefit.

As someone who's been through this exact decision process, I'd suggest creating a spreadsheet to map out the total household income under both scenarios. When I was deciding between claiming at 67 vs waiting until 70, I found it helpful to calculate the cumulative difference over 5, 10, and 15 year periods. In your case, claiming at 66.5 gives you both benefits starting immediately - your full retirement age benefit plus your wife's $500 spousal increase. That's real money in your pocket for 3.5 years while you wait. The breakeven analysis gets complicated when you factor in the time value of money and what you could do with that extra $500+ monthly. Don't forget to also consider Medicare premiums - they're deducted from your SS benefit, and having that steady income stream can help with budgeting those costs. Since you're retiring from teaching, you probably have good health insurance options, but it's still worth factoring in. The peace of mind of having both benefits flowing can be worth something too. My wife and I decided to claim at full retirement age and we've never regretted having that financial security locked in.

I wonder if they'd make the repeal retroactive?? Like would we get back pay for all the years we should have been getting benefits? Probably not, knowing how the government works, but it would be nice!!

As a fellow educator who's been following this issue closely, I want to add that timing matters a lot here. The current Social Security Fairness Act (H.R.82/S.393) has more cosponsors than previous attempts, but it still needs to get through committee and floor votes in both chambers. For your specific situation with 36 credits, you're actually pretty close to the 40-credit threshold. If you have any other work periods where you paid into SS (even part-time jobs, substitute teaching in districts that pay SS taxes, etc.), those might push you over. It's worth double-checking your complete work history. Also, regarding Medicare Part B - if GPO repeal passes and you start receiving spousal benefits, SSA would automatically deduct your Part B premiums from your SS check, which many people find more convenient than paying separately. Just another small benefit to consider! The reality is that this affects millions of public servants, and the political pressure is building. While I can't predict if/when it will pass, the momentum does seem stronger than in previous years.