Ask The Hammer: What Is A Restricted Application and How Can I Build That Into My Retirement Plan?

Key Takeaways

• If born on or before January 1, 1954, you can file a restricted application to collect only spousal benefits while letting your own benefit grow at 8% per year until age 70—Larry's wife (born February 1953) qualifies for this strategy
• Higher earners in a couple should typically delay claiming Social Security and focus on longevity at the second death, since their larger benefit becomes the survivor benefit; lower earners should consider their health and whether both spouses will live long
• For lower-earning spouses born after January 2, 1954 (unable to use restricted applications), delaying becomes less attractive since they can't collect spousal benefits in the interim—claiming earlier may make sense if longevity is uncertain
• The survivor benefit equals the higher earner's benefit amount, so maximizing the higher earner's benefit by delaying directly increases what the surviving spouse receives after one spouse dies
• If either spouse may die relatively soon, the lower earner should claim benefits sooner rather than later, since only the higher earner's benefit survives to the remaining spouse