Social Security

20-Second Read

The best age to claim Social Security depends on more than your break-even age. Health, longevity, employment, portfolio assets, taxes, spousal benefits, and your need for income should all be
considered.

In-Depth Answer

You can generally begin Social Security retirement benefits as early as age 62, but claiming before full retirement age permanently reduces your monthly benefit. Delaying beyond full retirement age can increase your benefit until age 70.

The decision should be coordinated with your overall retirement plan. Someone with substantial retirement assets may choose to delay Social Security and use investments temporarily. Someone with health concerns or an immediate income need may reasonably claim earlier.

For married couples, the decision becomes even more important because the higher earner's benefit can affect the eventual survivor benefit.

20-Second Read

Yes, but if you claim Social Security before full retirement age and continue working, some benefits may be temporarily withheld if your earnings exceed the annual limit. Once you reach full retirement age, the earnings limit no longer applies.

In-Depth Answer

Social Security has an earnings test for people who claim benefits before full retirement age. If your earned income exceeds the annual threshold, a portion of your benefits may be withheld.

Those withheld benefits are not necessarily lost forever. Social Security adjusts your benefit after reaching full retirement age to account for months in which benefits were withheld.

Importantly, the earnings test applies to earned income such as wages and self-employment income—not investment income, pensions, IRA withdrawals, or most other retirement income.

20-Second Read

In retirement, the distinction between “income” and “principal” is less important than creating a sustainable total-return strategy. Dividends and interest can help fund spending, but selling investments
strategically can also be appropriate.

In-Depth Answer

Social Security taxation is based on what the IRS calls combined or provisional income, which generally includes adjusted gross income, tax-exempt interest, and half of your Social Security benefits.

As income rises, a greater portion of Social Security may become taxable. This makes retirement withdrawal strategy important. IRA distributions, Roth conversions, pensions, investment income, and capital gains can all influence how much of your Social Security becomes taxable.

Coordinating Social Security with Roth assets, taxable accounts, and traditional retirement accounts can create opportunities to manage lifetime taxes.

20-Second Read

Social Security spousal benefits let you collect up to 50% of your spouse’s primary benefit amount if you are at least 62. You automatically get whichever amount is higher: your own benefit or the spousal benefit. To get the maximum 50%, you must wait until your Full Retirement Age (67 for those born in 1960 or later) to claim. If married, your spouse must claim their own benefit first. If divorced, you can claim if you were married for 10+ years and remain unmarried. Spousal benefits do not increase if you delay past full retirement age.

In-Depth Answer

Social Security spousal benefits provide extra retirement income based on a partner’s work history. Eligible spouses can receive up to 50% of the primary earner’s baseline benefit calculated at their Full Retirement Age (FRA). When you file, Social Security automatically pays your own retirement benefit first; if the spousal payout is higher, you receive a top-up to bridge the difference. However, you cannot double-dip to receive both full amounts.

To qualify, you must be at least 62 years old and married for at least one year, and your partner must actively claim their own retirement benefits first. Claiming spousal benefits early (between ages 62 and 66) permanently reduces your monthly check to as low as 32.5% of their baseline amount. Waiting until your full retirement age (67 for anyone born in 1960 or later) secures the full 50% max payout, but delaying past age 67 will not increase your spousal benefit.

20-Second Read

Social Security survivor benefits allow a surviving spouse (or eligible ex-spouse) to collect up to 100% of a deceased worker’s monthly check, including any delayed retirement credits they earned. You can claim survivor benefits as early as age 60 (or age 50 if disabled), though claiming before your survivor full retirement age permanently reduces your payout. Unlike standard spousal benefits, survivor benefits allow you to switch to your own retirement benefit later if it grows larger, and divorced spouses qualify if married for at least 10 years.

In-Depth Answer

Social Security survivor benefits protect surviving partners by allowing them to step into a deceased spouse’s financial shoes and inherit up to 100% of their monthly benefit. This amount includes any extra delayed retirement credits the deceased spouse earned by waiting up to age 70 to claim. If you qualify for both your own retirement benefit and a survivor benefit, you can claim one first and strategically switch to the other later if it provides a higher payout.

You can begin collecting survivor benefits as early as age 60 (or age 50 if disabled), but claiming before your survivor Full Retirement Age (ages 66–67, depending on birth year) permanently reduces your monthly check to between 71.5% and 99% of the baseline amount. Surviving spouses of any age caring for the deceased’s child under age 16 can also receive benefits. Delaying survivor claims past your full retirement age offers no additional increases.