Deciding when and how to claim Social Security is one of the most important retirement decisions you’ll make, and making the best decision for your own situation is more complex than many realize.
It’s also why FSA Wealth Partners emphasizes the need to integrate this decision with other aspects of our clients’ financial lives through our Get Wealth Planning Process™, ensuring each choice aligns with the client’s full financial picture and long-term goals.
Strategic Timing: When Should You Claim?
Everyone eligible for Social Security retirement income benefits earns a monthly benefit based upon their lifetime of earnings. The calculated core benefit is available at your full retirement age (FRA), typically between ages 66 and 67 today. You can begin collecting Social Security as early as age 62, but doing so reduces your monthly benefit for life. The reduction can be about 6-7% for each year you claim early. Conversely, delaying your claim beyond your FRA can substantially increase your monthly payments by about 8% over the FRA benefit for each year up to age 70. There are no further increases available after 70 years old.
For example, if your full retirement age benefit is $2,000 per month, claiming at 62 may reduce it to approximately $1,400, (a 30% reduction). Delaying until age 70 could boost it to roughly $2,480, which is a 24% increase in monthly Social Security income over your lifetime
Before deciding when to file, we encourage pre-retirees to evaluate:
- Life expectancy, based on health and family history
- Income needs and availability of other sources
- Tax exposure, since your Social Security benefits may be taxable
- Spousal and survivor benefits and how they could be impacted
Maximizing Benefits for Married and Divorced Couples
Couples have unique planning opportunities. Social Security isn’t just an individual decision if you’re married; the right combination of claiming strategies can help couples optimize lifetime benefits and protect the surviving spouse’s income.
A common strategy involves the lower-earning spouse claiming early, while the higher earner delays until age 70. This ensures there is some income coming in, while allowing the higher benefit to grow over time. In the future, the surviving spouse claims the higher of the two benefits, so growing the higher earner’s benefit to its maximum could be more beneficial over the combined lifetimes.
Additionally, divorced individuals who were married for at least 10 years and remain unmarried may still qualify for ex-spousal benefits. If 50 percent of your ex-spouse’s FRA benefit exceeds your own, you’d receive that higher amount (as long as you claim your benefit at your own FRA) without reducing what they receive. Claiming your benefit between age 62 and your FRA will reduce this benefit. This is also not affected if your ex-spouse remarries.
These planning options can add tens or even hundreds of thousands of dollars in total benefits when optimized properly.
Still Working? Understand the Earnings Test
If you claim and collect Social Security before reaching full retirement age and still earn income, your benefits may be temporarily reduced. In 2025, if you earn over $23,400, your benefit is reduced by $1 for every $2 earned above that limit. In your full retirement age year, that reduction changes to $1 for every $3 earned if your earned income is above $62,160. This earnings test often impacts part-time professionals, consultants, or business owners who phase into retirement.
The Role of Tax Planning in Social Security Decisions
Many retirees are surprised to learn that Social Security benefits can be taxed. In fact, if your “combined income” (which includes wages, interest, dividends, pensions, and half of your Social Security) is above certain thresholds, up to 85 percent of your benefits may be taxable. As an example, a combined income figure above $44,000 for a joint-filing couple would mean 85% of their Social Security income would be taxed.
At FSA, we incorporate Social Security decisions into your broader tax strategy. For some clients, it makes sense to draw from a taxable brokerage account or convert a portion of their traditional IRA to a Roth before activating Social Security. This proactive sequencing can help keep income below key tax thresholds.
Real-World Application: A Coordinated Strategy
Consider Michael and Susan, a couple we recently helped. Michael earned significantly more than Susan throughout their careers. Using the Get Wealth Planning Process™, we helped them implement the following retirement strategies:
- Susan claimed her benefit at her full retirement age of 66 and 6 months.
- Michael delayed his benefit until age 70.
- Their investment withdrawals were carefully managed to fill the income gap.
- We helped them minimize taxes by drawing first from taxable assets, deferring IRA withdrawals and allowing IRA assets to grow further, tax-deferred.
This strategy created more lifetime income, enhanced Susan’s survivor benefit, and allowed their portfolio to continue growing.
Social Security & The Get Wealth Planning Process™
At FSA Wealth Partners, Social Security is never treated as a standalone decision. It is integrated into your full retirement income plan. Our proprietary Get Wealth Planning Process™ can help provide confidence that your benefits are aligned with:
- Tax optimization strategies
- Portfolio withdrawal plans
- Risk management and longevity protection
- Legacy and estate goals
The result is a personalized road map that coordinates your income streams in the most efficient way possible.
Your Personalized Social Security Strategy Starts Here
No two retirement plans are alike. Your Social Security decision should reflect your goals, income needs, tax situation, and investment portfolio. That is why every FSA client receives a tailored plan that integrates Social Security into a comprehensive retirement strategy.
Ready to understand how Social Security fits into your financial plan? Schedule a consultation with our team at FSA Wealth Partners by calling (301) 949-7300 or emailing jim@FSAwealthpartners.com. Visit our website at: https://fsawealthpartners.com/.
About Jim
James Joseph, CFP®, is the President and Partner of FSA Wealth Partners (FSA), a financial services firm in Rockville, MD, with over 40 years of experience helping individuals, families, and business owners navigate the complexities of wealth management. Since joining FSA in 2004, Jim has been passionate about guiding clients with personalized financial and investment advice, simplifying complex financial topics, and providing tailored solutions—especially for those approaching or enjoying retirement.
Jim takes pride in the FSA Safety Net®, a unique strategy designed to help clients avoid major losses during market downturns. His belief that “you win by not losing” underscores FSA’s proactive approach to preserving wealth while still seeking growth. By focusing on risk management and using the FSA Safety Net®, Jim works to prevent small losses from becoming significant setbacks, keeping his clients’ goals intact. Jim emphasizes the importance of both active management and comprehensive financial planning.
Jim began his financial career in 1997, gaining experience at Charles Schwab and Morgan Stanley, where he crafted retirement strategies and managed portfolios. His extensive background, combined with his genuine dedication to helping clients reach their financial goals, has made him a trusted advisor. He particularly enjoys seeing clients succeed when they embrace his advice and transition smoothly into retirement, believing that starting early and leveraging the power of compounding can unlock future financial flexibility.
Jim holds a bachelor’s degree in Finance from West Virginia University, the CERTIFIED FINANCIAL PLANNER® designation, and over the years has shared his financial knowledge in publications such as The Wall Street Journal and Reader’s Digest. When not at work, Jim enjoys spending time with his three daughters, playing ice hockey, and cheering on his beloved Pittsburgh Penguins and Steelers. He’s also into aviation, working toward his private pilot’s license. To learn more about Jim, connect with him on LinkedIn.
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