Social security at age 70-Contingency planning

Crushed

I just got my first Social security payment on my own account as opposed to the  spousal allowance on DW's account.  This trick has been eliminated for anyone born after Jan 1 1954.

Covid has certainly caused a staggering increase in costs for DW, primarily the extra cost of her personal caretaker in MC.  I saw her for the first time since March and she is very well taken care of.    She could last along time.
 
 So I have a plan C.  If I got sick and needed full time care we would bring her home and install full time home based 24/7 caretakers on a live in basis. We have the house for it.  We live in an area where such care can be hired.  It would only cost about $3,500 more per month than her current care to look after both of us at home.  DD #1 & 2 are willing to handle any administration required. 

At least it is something

Rescue mom

One thing that jumped out at me, because I’m struggling with it, is how you have the house for it. We downsized bigtime several years ago. It’s small, not meant to accommodate anyone but us. Now that’s a problem.

 The idea of Alzheimer’s and needing what’s basically a babysitter (no, I don’t use that word with DH) for hours, never occurred to us. There’s almost no way to not have an aide, and whatever they may be doing (or not) in sight.  Of course your caregiver needs are/would be different. The house part just struck me.

Crushed

We  bought this house from my parents in 1977.  We did massive renovations in 1987 and 2016.   The second renovation was specifically to make the house handicapped  accessible.  I now live on the first floor. Having a house where we could have a live in caretaker was   part of the plan.  Before engineering I was a Professor in Consumer economics with specfic expertise in housing costs.  I ran the numbers every way I could. The house is easily sold or rented.  I get offers regularly.  It makes sense if I want to live near my grandchildren

piozam13

Congratulations Crushed on being 70.

With your budget, you are able to afford the best care anywhere. 

This is not for everyone, but our alternative was to live abroad.  DH was opposed to living in a 'home' or similar arrangements/facilities.  I  had given living abroad serious consideration and had taken steps to relocate when it would become necessary.   I wouldn't be able to give DH the proper care and I wouldn't afford help 24/7 here.  But we could afford good care in addition to tropical weather and beach abroad.

But heavens above had other plans.  He was called to join the Lord way too soon.

Crushed

Oh I looked at it.  We are dual nationals so anything was possible.  Our daughters had different ideas. So between 2013 and 2019 they gave us five lovely grandchildren

McCott

Crushed -- In your planning, do you never think of pills?  I have pills, quite a few of them, which I have saved up from past surgeries, including the most recent one when my soon to die ALZ husband pulled me down in a hypoglycemic faint and broke my back.  I am still in constant pain after a spinal fusion of L3 to T10, fighting with opioid-phobic doctors for any pain relief for the stress on L4 and L5 after almost a year. 

I am in PT and use all topical and OTC remedies available, I have had bilateral cortisone shots as well as "nerve ablation."  But I am still in pain and I fight to get a minimal level of prescription pain medication, which actually works if taken on a regular basis. I am treated like a teen aged druggy street walker, lectured on the "dangers of opioids" -- as if I care about anything except the constant pain and how long it is worth living like this.  I have to live for my son who was devastated by his father's death, but why can't they let me have a pain free, opioid life worth living for the time that is left to me?  

Why they think I should live in pain rather than get pain relief for something NOT MY FAULT is beyond me.  I take as few as I can because I fear them cutting me off some day,     I live in pain and in memory of my sweet and beloved ALZ husband who did not mean to cripple me. I save as many pills as I can for when I simply cannot stand it anymore.  Plus I have a low grade cancer that unfortunately doesn't promise to do me in. 

Why can I not get the level of pain relief necessary to live a basic life for another several years?  I really don't think this is my problem -- rather it is the "over-correction" of the Oxycontin (not oxycodone)  thing.  If only I could live my remaining years without pain -- there is no reason that should not happen, except that current MDs are prohibited from or afraid of providing pain relief to non-addicted patients.

Because there are junkies in the land? What does that have to do with me and my chronic pain?  This has to become an old person's agenda against a frightened medical profession.

Crushed

My contingency planning for health care needs was to raise two wonderful, smart and dedicated daughters.  DD#1 is a Public health PhD with FDA    DD#2 is a Assistant  Attorney General in health regulation.  Both are "mother bears".    They have been my partners in decision making for DW since the beginning.  They will be my advocates.   I am sorry for your situation.  I have not been in a hospital as a patient since I was 20.  My parents lived to 87 and 89 and both died at home.  

caberr

Crushed, I like your plan.  You have added another reason to just stay put.   We live in a 4 bedroom house (had 5 children and now 14 grandchildren) and are mortgage free.  The past few years we have done the major updates...roof, windows, furnace/ac, updated bathrooms(the one downstairs with a walk in shower).  My thoughts were if we stayed here we could move our bedroom downstairs and if we moved, doing the major updates would only add to the house. We have a daughter in town the others are anywhere from 45 minutes to 2.5 hours away. We are centrally located to all of them.

BethL

McCott, have you thought about a spinal cord stimulator or medical marijuana?

Cynbar

Crushed, I have a question for you. I was born before Jan 1, 1954. The way I read the law, I could still apply for the spousal benefit and then switch to my own when I turn 70. Doing this would not jeopardize my ability to collect on my own account later on. However, anyone born after that date would not be able to later switch from spousal benefit to their own earned benefits. This would be something I could start now, even though I didn't apply earlier, when I was 62. Is that how you also interpret it? I just don't want to do anything that would cost me the chance to get my own benefits later on so I have hesitated.

Crushed

You can only collect spousal benefits and wait until 70 to claim your retirement benefit if all of the following are true:  

• You were born before Jan. 2, 1954.
• You have reached your full retirement age. (my note 66 not 62)
• Your spouse is collecting his or her own Social Security retirement benefit.(my note disability also counts )

This makes you eligible to file a “restricted application,” which allows you to collect a spousal benefit while delaying benefits on your own earnings record. To do so, you should state in the remarks section of the application form that you wish to exclude your retirement benefit from the scope of your Social Security claim.
 

Under a law Congress passed in 2015, people born after Jan. 1, 1954, cannot file a restricted application, regardless of how old they are when they file for benefits. They are covered by what Social Security calls “deemed filing.” When they claim retirement benefits, they are also deemed to be claiming any spousal benefits they are entitled to, except under narrow circumstances.

  https://www.aarp.org/retirement/social-security/questions-answers/spousal-benefits-until-70.html

 The trick for us that was critical was that DW was on Social security disability, so her age did not matter  (AARP says Retirement, that is not correct disability counts.)   YOU have to have reached full retirement age. 66 for anyone born before Jan 1 1954. 

Cynbar

Thanks Crushed, that's what I thought. All of those criteria do apply to me. If I do go ahead, is it difficult or complicated to switch to me own earned benefit when the time comes ? Same application? You just accomplished this so now is the time to ask. Thanks for all your helpful advice.

Crushed

It was easy but in its own way hilarious.  I got a call from a number in Colorado.  He said he was Social Security and had a few questions  to authenticate who I was.    He said he was working from home due to COVID  I wanted to know how to authenticate who he was !
Social security had provided no system for allowing you to authenticate. As a lawyer it's easy I gave him my bar number and he could check online that the name and address matched. Finally he gave me some information from DWs account that allowd me to confirm his identity.  I then sent him copies of our passports. (DW license had expired)   
All easy. 

 

zauberflote

Cynbar, my serious wage earning stopped when I was 50, so when I turned 66 I put in for my own SS. DH is now eligible for spousal on me, and as he is our primary wage earner, will wait until he is 70 to start taking his own. As I understand it, mine will then automatically become spousal on him. Oddly, I got my best SS advice first from a Medicare rep! He had some time to kill I guess. When I went to SS office, my rep there confirmed everything I'd learned about the way to maximise our SS earnings, given we both fall well inside that 1954 cutoff date. 

Crushed, that is a funny story! Not many of us have credentials like that to allow a suspicious person from whatever state to find us without giving anything away. I would probably have thrown the phone out the window!

Crushed

"As I understand it, mine will then automatically become spousal on him."  I cannot figure out what you are saying. you can get spousal or your own not both you get whichever is bigger

Cynbar

Sounds like dauber's spousal benefit will be higher than what she gets now on her own account, but she can't switch until her husband retires and starts getting his own benefits. Husbands have often been the main breadwinners so I imagine this comes up a lot. I'm curious if Social Security will automatically tell someone that their spousal benefit would be higher, or do you have to figure this out on your own and request the spousal benefit. If they don't tell you, I bet a lot of people are missing out on a bigger check.