How to Maximize Your Social Security Benefits
For many retirees, Social Security is a vital source of income. While it’s not designed to be your only retirement income stream, maximizing your benefits can make a significant difference in your financial stability and lifestyle during retirement. The good news is—there are strategies that can help you get the most out of what you’ve earned over a lifetime of work.
Whether you're nearing retirement age or already receiving benefits, understanding how Social Security works can help you make smarter, more informed decisions.
When You Claim Matters
One of the most important decisions you’ll make is when to start taking benefits:
Age 62 is the earliest you can claim—but your benefit will be permanently reduced.
Full Retirement Age (FRA) depends on your birth year (typically between 66 and 67). Waiting until FRA gives you 100% of your earned benefit.
Age 70 is when your benefit tops out. If you delay past FRA, your monthly payment increases by about 8% per year you wait.
💡 Example: If your FRA benefit is $2,000/month, waiting until 70 could increase it to over $2,600/month for life.
If you’re in good health and have other income sources, delaying benefits can significantly boost your lifetime income.
Spousal and Survivor Benefits
If you’re married, divorced, or widowed, you may be eligible for benefits based on your spouse’s or ex-spouse’s work record, even if you never worked yourself. These benefits can be up to 50% of your spouse’s benefit if claimed at full retirement age.
Widows and widowers can also claim survivor benefits, which are equal to the deceased spouse’s benefit. These benefits can be claimed as early as age 60 (or 50 if disabled), and you can switch to your own benefit later if it becomes higher.
Work and Benefits: The Earnings Test
If you claim Social Security before FRA and continue to work, some of your benefits may be temporarily withheld if your income exceeds the annual limit. Once you reach FRA, this earnings cap goes away, and your full benefit is restored—plus your benefit may be recalculated to account for the months you didn’t receive full payments.
This is a key consideration if you plan to work part-time in early retirement.
Taxation of Benefits
Many retirees are surprised to learn that Social Security benefits can be taxed. If your combined income (which includes half of your Social Security benefits, plus other income) exceeds certain thresholds, up to 85% of your benefit could be taxable.
Working with a retirement planner can help you structure your withdrawals and income sources to minimize how much tax you owe on your benefits.
Coordinating with Other Retirement Income
Your claiming strategy should align with your broader retirement income plan, including:
Pensions
Investment withdrawals
Annuities
Life insurance with living benefits
Part-time work or rental income
A smart strategy can help you preserve other assets and stretch your income further over time.
Social Security is more than just a government check—it’s a strategic asset. Whether you’re single, married, divorced, or widowed, Sound Retirement Solutions can help you evaluate your options and time your benefits to work for you—not against you. Schedule a free Social Security review today and get clarity and confidence for the years ahead.
