Retirement planning is a primary focus of how we help clients. When it comes to Social Security, we help clients see that it’s more than just a monthly check — it’s a powerful tool that can influence your income strategy, tax exposure, and overall financial confidence in retirement.

 

Due to its importance, we frequently receive questions on this topic. Below are six of the most common — each tied to long-standing rules with meaningful planning implications:

 

How are my benefits calculated?

Social Security uses your highest-earning 35 years of work to determine your benefit. If you have fewer than 35 years or several low-income years, it can lower your average. Working for a few more years, especially at a higher income, can replace those earlier years and boost your lifetime benefits.

 

Is it better to delay benefits if I have other income?

Often yes. For every year you delay claiming benefits past your full retirement age (up to age 70), your monthly payment increases by about 8%. That’s a solid, guaranteed return — especially if you can draw from other income sources in the meantime.

 

How does Social Security fit with my retirement income plan?

It provides a base of guaranteed, inflation-adjusted income, which helps reduce pressure on your investment portfolio and adds stability to your cash flow, especially during market downturns.

 

Are my Social Security benefits taxable?

They can be. Depending on your total income, up to 85% of your benefits may be taxed. The IRS uses provisional income, which includes things like IRA withdrawals, wages, and half of your Social Security, to decide how much is taxable. With the right planning, it’s possible to structure your income in a way that reduces how much of your benefit is taxed, potentially saving you thousands over time.

 

Can I work and collect Social Security?

Yes — but if you start collecting before full retirement age, your benefits could be temporarily reduced if your earnings exceed certain limits. After full retirement age, you can earn as much as you like without affecting your Social Security.

 

What happens to my benefits if I’m widowed?

You may be eligible to receive up to 100% of your late spouse’s benefit, especially if you wait until full retirement age. You won’t receive both benefits in full — just the higher of the two. If your spouse delayed their benefit, your survivor benefit could be higher. With careful planning, it’s sometimes possible to claim one benefit and switch to the other later.

 

If you’d like to talk about how Social Security fits into your broader plan — or how to make the most of your benefits — we are here to help.