When to take Social Security benefits has become a major topic on the Internet as more people are become eligible. The major is question is when to take it: Early before full retirement age (FRA); At FRA 66 and 10 months born 1959 or 67 born 1960 or later; or Delayed after FRA but no no later than 70.
This question is already a complex one with factors such as estimated life expectancy, health, other sources of retirement income, and current financial situation that affect.
However, there is one factor that is rarely discussed that may have even more impact, auxiliary benefits for minor dependents, which only a few people qualify for. If one is taking Social Security payments, one's minor dependents under 18, or until 19 if they are in high school, can receive auxiliary benefits up to 50% of the PIA (primary insurance amount) limited by the maximum family benefit cap. The auxiliary benefit amount can be significant. For example, if the PIA is $3200, the auxiliary benefit can be has high as $1600. In addition, the spouse can receive auxiliary benefits caring for a minor child under 16.
Most people are not aware of possible auxiliary benefits when retiring, but they are definitely as factor when one is considering what age to take start taking Social Security.
This is not financial nor retirement advice. Please consult a professional advisor.
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