How Waiting for Your Railroad Retirement Spousal Annuity Can Be Costly?

Welcome to another edition of the Highball Advisors Railroad Retirement Mailbag! I’m John McNamara with Highball Advisors, and today’s question comes from Michael B. He writes, “I’m currently working and will have 30 years in at the age of 62. I’m 48 now, and my wife is nine years older. What’s the earliest she can start drawing Railroad Retirement?”

Great question, Michael! The earliest your wife can start drawing her Railroad Retirement spousal annuity is when you retire. If we’re doing the math, that would be when you’re 62 and she’s 71. A spousal annuity can only begin once the railroader (you) starts their annuity, so she’ll need to wait until then.

That said, if your wife has 40 quarters of Social Security, I’d recommend she start collecting her Social Security benefits at age 62. Then, she can switch over to the Railroad Retirement spousal annuity at age 71 when you retire.

For more details, check out my video on “What You Need to Know About Spousal Benefits in Railroad Retirement” – it covers a lot of the key points.

I hope this helps, Michael! Feel free to send in more questions, and I’ll be happy to create another video. Until next time, everyone, stay safe, stay on track, and take care. So long!

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.