This guest blog post is contributed by Boomerater, a free online resource for Baby Boomers helping you find everything from a Seattle financial adviser to great vacation ideas. Seniors for Living contributes its senior housing properties to Boomerater’s local directories including retirement living in New York,  Arizona Alzheimer’s care, and more.

A new Q&A discussion from Boomerater’s forums appears here each Friday. In this week’s post, we discuss ways to maximize your social security income.

Boomerater Question:
“My wife was a stay-at-home mom, but did work for about 12 years. Is she entitled to Social Security benefits? If so, what’s the best age to begin taking benefits? She and I are both 60 years old and would like to learn of any tips that can help us maximize income from Social Security.”

Responses:
Most people can elect to begin taking Social Security when they turn 62, but benefits increase each year they are not taken until age 70. The level of your benefits are determined by your lifetime earnings history. Outside earnings may reduce your Social Security benefits until you’ve reached what’s known as your Full Retirement Age (FRA) — 65 for those born before 1938, and increasing to 67 for those born in 1960 and later. You can go to this link and use the Retirement Estimator to determine your benefit amount.

To qualify for retirement benefits you will have needed to work for at least 10 years or 40 quarters of credit. You can delay receiving your benefits until age 70 and will receive Delayed Retirement Credits (DRCs) for doing so. Depending upon your age, your eventual monthly benefit will be increased by 6.5 percent to 8 percent per year for each year benefits are deferred up to age 70.

Most recipients receive benefits tax free. However, those with higher incomes must include up to 85 percent of their Social Security benefits in their taxable incomes.

Lesser known, but very important Social Security “factoids”:

1) If you are married and your spouse has not earned any Social Security credits, your spouse can collect a spousal benefit once you’ve reached your FRA and are collecting benefits yourself. You can then “suspend” your own benefits and earn more DRC’s up until age 70. That way, your spouse gets benefits now and your benefits continue to increase both for yourself and your spouse (widow/widower benefit).

2) If you are married and both spouses have earned Social Security credits, the higher earner should consider delaying benefits, and the lower earner should consider starting benefits early at age 62. The reason behind this is that the lower-earning spouse receives his/her benefits now and would also be eligible for increased benefits should their spouse die. Actuarially, this usually makes good financial sense (based on the net present value of total benefits received). However, if there is a family history of poor health or longevity, a different approach should be considered (if in poor health, both spouses should consider taking Social Security early; if in good health, both should consider delaying until age 70).

This information was contributed by certified financial planner Paul C. Bennett, a featured advisor in Boomerater’s financial advisor directory.

To read responses from Boomerater members and to share your own experiences, go to the Boomerater post: Maximizing Social Security Benefits.