Ask Larry: Can I Get Early Spousal Benefits And Delay Retirement Benefits?. Larry Kotlikoff is the founder and president of Economic Security Planning, a company that markets Maximize My Social Security, a Social Security benefits calculator referred to in this post. Ask Larry about Social Security: Ask Larry *Obligatorio Ask your question here! Hi Larry, My husband started drawing his Social Security at age 62 due to necessity. I have earned much less (and my retirement benefit will definitely be less than my spousal benefit). My company's Social Security software, Maximize My Social Security, or another top notch program can help you find your best filing strategy. Best, Larry Can My Husband File For Just Spousal Benefits At Age 66, And Then On His Own Record At Age 70? Hi Larry, I started receiving my retirement benefits at age 62. If you do get a job and expect to earn more than the Social Security limit, be sure to notify Social Security of your expected earnings in a timely manner. To learn more about your Social Security options, visit Maximize My Social Security.
Employers, academics, and policymakers all recognize that drawdown is the major challenge facing the 401(k) system.
Participants face the risk of spending their money too quickly and exhausting their assets or hoarding their balances and depriving themselves of necessities.
My view is that reluctance to spend is the greater threat for three reasons. First, people form an unnatural attachment to their pile of assets, which they have spent a lifetime accumulating. Second, people are fearful of end-of-life health and long-term care expenses. Third, many people want to leave a bequest to ensure their immortality. Thus, given the modest size of 401(k) balances, without some orderly drawdown mechanism many retirees could live in self-imposed deprivation.
With these concerns in mind, in 2014, the Department of Treasury in collaboration with the Internal Revenue Service (IRS) and the Department of Labor (DOL) issued guidance on how plans might incorporate auto-annuitization features into target-date funds (TDFs).
Under this arrangement, a fund will allow participants, say, age 50 or older to invest a portion of their assets in deferred annuity accounts. When the fund reaches its target date, it will dissolve, participants will receive an annuity certificate providing for immediate or deferred annuity payments, and the remaining portion of the participant’s investment would…