Another complexity is that sometimes the spouses of Social Security recipients want to claim the spousal benefits before the recipients want to start claiming their actual benefits. In that case, the recipient must file for benefits and then suspend them so the wife or husband can claim the spousal benefits. The person claiming them can then let them build till he or she is 70 and then begin taking them.
Whether something like this is a good tactic depends on which spouse is ready to retire and who has had the higher earnings.
Clients also have to figure out how much of their Social Security benefits will be taxed and whether the portfolio is based on taxed or tax-deferred savings. The Social Security recipient can delay taking benefits to let them build until he or she is 70 and live off the portfolio first, but the tax implications have to be considered, Reichenstein says.
Because of these and many other complications in the rules, Reichenstein recommends an advisor consult a Social Security expert to get the best benefits for the client.
But that means more advisors are going to have to become familiar with the rules.