For the majority of Americans, Social Security benefits are pivotal to effective retirement planning, but navigating its complexities can be daunting. 

By explaining some of the intricacies of Social Security, this article equips you with the knowledge you need to maximize your benefits and pursue a comfortable retirement. I go over key claim timing strategies, optimization tactics for married couples, the effects of working in retirement, and practical advice to increase your lifetime Social Security income.

Timing Your Claim

Choosing when to file for Social Security is a personal decision with long-term consequences. A smart move is to carefully evaluate the following factors:

• Life expectancy: Postponing benefits may be beneficial if you anticipate having a long, healthy retirement. The larger monthly payout can significantly increase your lifetime benefits. On the other hand, it might make more sense to claim early if you have health issues or a reduced life expectancy.
• Financial needs: Determine how much money you’ll need for retirement. If you need money right away, you may need to make a claim early. However, consider delaying your claim if you have other sources of income.  
• Returns on investments: Weigh the possible gains in Social Security payments you receive from postponing your claim against the possible gains from investing those funds.
  

Married Couples Can Maximize Combined Benefits

To increase their combined Social Security benefits, married couples have these unique opportunities:

• Spousal benefit: Even if a spouse has a lower benefit or has never worked, they are still eligible to receive up to 50% of the higher-earning spouse’s primary insurance amount. 
• Coordination is essential: The lower-earning spouse may be able to claim spousal benefits based on the higher earner’s record if the higher-earning spouse decides to postpone benefits. This strategy can generate income while waiting for the higher earner’s benefit to increase.
• Benefits for divorced spouses: Depending on your ex-spouse’s record, even if they remarry, you might qualify for benefits if you were married for at least 10 years and are currently divorced.  
  

Working in Retirement Affects Your Social Security Payments

Social Security benefits are affected by working while you’re retired, especially if you’re under your full retirement age (FRA). Here’s how it works:

• Under your FRA: There is an earnings test administered by the Social Security Administration (SSA) if you are under your FRA. Your Social Security payments might be temporarily lowered if your wages surpass a specific annual cap.
  • The yearly earnings cap for 2025 is $23,400. Your Social Security benefits are reduced by $1 for every $2 you make over this cap.
• In the year you reach FRA: Only earnings prior to the month you hit your FRA are counted, and the earnings restriction is greater in the year you reach your FRA.
  • The cap is $62,160 for 2025.
• Once you reach FRA: There is no cap on how much you can earn after you reach your FRA; your Social Security payments are not reduced by your earnings. 
  

Tips for Maximizing Your Payments

Check out this condensed list of tips for maximizing your Social Security payments:

1. Delay, delay, delay (whenever possible): A savvy strategy to increase your lifetime Social Security income is usually to postpone benefits.
2. Plan with your spouse: Married couples should collaborate to create a claim plan that optimizes their combined benefits.
3. Review your Social Security statement: To verify accuracy and spot any possible problems, check your statement on a regular basis on the Social Security website.
4. Consider your entire retirement plan: A comprehensive retirement plan should incorporate Social Security as well as other sources of income, assets, and costs.  
5. Recognize the effect of inflation: Social Security benefits are modified each year to account for inflation, which helps maintain their purchasing power over time.
6. Spousal benefits: Even if you’re eligible for your own benefits, consider claiming spousal benefits. Spousal benefits can occasionally be favorable, especially if your own earnings are lower.
7. Seek professional advice: A financial advisor who specializes in retirement planning can offer tailored, up-to-date guidance to help you develop a Social Security claiming strategy that aligns with your individual circumstances.  
   

Partner With a Professional

To leverage Social Security to its maximum potential, partner with a professional financial advisor to create a thorough retirement plan—one which incorporates your Social Security benefits and other income sources. 

With careful planning, you can enjoy a more enjoyable retirement. I believe everyone deserves a healthy, happy stress-free retirement, and at Retirement Protection Solutions, my primary mission is to work with clients who want to retire stress-free! 

Does that sound like you? I invite you to schedule a meeting by calling (216) 272-2333, emailing [email protected], or scheduling online.

About George

George McFadden is the principal at Retirement Income Planning, a financial advisory firm in the Greater Cleveland area focused on guiding clients in the “Retirement Red Zone”—those nearing or entering retirement who need protection, reasonable growth, and guaranteed retirement income. With over 25 years of experience working alongside top financial advisors across the U.S., George saw a significant gap in traditional retirement planning. His mission is to fill that gap by helping clients protect their hard-earned savings and create a reliable retirement paycheck that lasts for life.

Many advisors offer a broad array of investment services that expose clients to market risk, often leaving those approaching retirement vulnerable. George’s value proposition is different: he emphasizes protection, ensuring clients don’t lose their principal, and offers guaranteed retirement income solutions to provide lasting confidence and peace. In partnership with Retirement Realized, George brings clients strategies that focus on safety and security, designed specifically for those who want to retire stress-free without relying on risky market-driven approaches. George is passionate about educating retirees on their income options, answering their questions, and separating fact from fiction.  George will walk you through the process so YOU Understand everything along the way. He believes the best benefit he provides to clients is a guaranteed retirement income that lets them sleep soundly at night.

Outside of the office, George enjoys golfing, biking, hiking, fly fishing, and boating. He is also deeply committed to supporting research for a cure for Type 1 Juvenile Diabetes, inspired by his daughter’s battle with the disease. To learn more about George, connect with him on LinkedIn. Retire Stress Free on Facebook.