Just to give you a concrete example with numbers to help with your planning: If your combined income is $65,000 (including half of her SS benefits of $9,000), then you'd be well into the range where 85% of her benefits would be taxable. With a $1,500 monthly benefit: - $1,500 × 12 = $18,000 annual SS benefit - 85% of $18,000 = $15,300 taxable amount - At a 12% federal tax bracket, that's roughly $1,836 in taxes on her benefits for the year - Monthly equivalent: about $153/month in taxes So if she chooses 10% withholding ($150/month), she'd receive $1,350 monthly and be very close to covering the tax liability on the benefits.

Don't forget that the $1500 benefit amount on the SSA website assumes you continue working until your FRA with the same income. If she's retiring completely at 62, the actual benefit might be a bit lower than what's estimated. Might be worth checking with SSA directly to get a more accurate figure before you finalize your budget.

My mom just went through this when she retired from teaching last yr. Make sure you report your pension to SS as soon as you start receiving it! They don't automatically know.

have u checked if ur eligible for any exemptions? i think if u were getting SS spouse benefits before 2004 there's some kind of exception. my neighbor mentioned something about that

One more important thing to consider: If you switch to retirement benefits at 62, that reduced amount becomes your permanent benefit (except for COLA increases). You won't suddenly get a higher amount when you reach 67. So you need to weigh the advantage of switching sooner (no asset limits, potentially higher than SSI) against the disadvantage of locking in a permanently reduced retirement benefit. This is why getting your exact numbers from SSA is so important before deciding.

After dealing with SSI's ridiculous restrictions for years, I'd take a slightly lower permanent payment just to be FREE of those asset limits!!! Being able to save money without fear of losing benefits is worth its weight in gold. My mother-in-law chose early retirement at 62 instead of continuing disability benefits and says it's the best decision she ever made - the peace of mind was worth WAY more than the extra money would have been.

One other aspect to consider if your own benefit is low: have you checked if you qualify for SSI (Supplemental Security Income)? If your resources and income are below certain limits, you might qualify for SSI now, even while waiting to claim your retirement benefit at 70. Another option worth exploring: if you worked fewer years than your ex-spouse, you might want to calculate whether claiming at 68 (now) might actually be better than waiting until 70. The extra 2 years of payments might outweigh the 16% increase you'd get by waiting, depending on your life expectancy and financial needs. I'd recommend using the calculators on ssa.gov or scheduling an appointment with a claims specialist to run different scenarios.

This is exactly why Social Security rules need to be reformed. The arbitrary 10-year cutoff for divorce benefits hurts many people who fall just short. After all, 6 years is still a significant relationship, and your ex contributed to the system his entire career. Unfortunately, until Congress changes these rules, SSA representatives have to follow them exactly as written. For now, I agree with the suggestion to look into SSI while waiting for your retirement benefits. Also consider whether you might qualify for any state-based assistance programs that could help bridge the gap until age 70.

Will your daughter be going to college? My friends kid still got survivor benefits during college so maybe look into that too!

Thank you all for the helpful information! I think I'm going to encourage her to take the job since she won't lose all benefits, just a reduction. We'll definitely report it to SSA right away and I'll make sure to keep track of her annual earnings. I appreciate everyone's advice!