Are you wondering how to make the most of your Social Security benefits in retirement? Pure’s Principal, Marc Horner, CFP®, shares nine smart strategies to help you keep more money in your pocket. Learn how the right approach today can help secure your financial freedom tomorrow.
Transcript
Social Security. It’s like that one friend who always shows up at the party just a little later than you’d like. But with the right moves, you can make sure they bring a bigger bottle. Let’s talk 9 ways to understanding your benefits so you get more bang out of those decades of payroll tax bucks.
First, understand how they keep score. Social Security takes your 35 highest-earning years to calculate benefits. If you only worked 34 years, that missing year gets counted as zero. Even I understand a zero is not going to help your benefits calculation.
Second, you will want to be familiar with your FRA – that’s your Full Retirement Age (FRA). A magic number between ages 65 and 67 when your Social Security benefit is fully cooked.
Third: Consider when you start your benefits. Claim early at 62, and you could get a benefit discount. Wait until FRA, you get 100% of your social security benefits. Wait until 70, and you can get an increase on your benefit. But “more” isn’t always better. Factors to consider includes your other sources of retirement income and your family longevity.
Fourth: Already claimed and wondering if it was too soon? You might be able to hit the undo button just don’t expect Ctrl-Z to work; this is the government after all, so paperwork is involved.
Fifth: If you’re married or were married for at least 10 years, you may be eligible for spousal benefits worth up to 50 % of your spouse’s benefit. Pro tip: The lower-earning spouse can claim early while the higher-earner waits for their benefit to continue to grow. And if one of you passes away, survivor benefits can help. I know it’s not a happy topic but tomorrow is promised to none of us. Always better to plan ahead.
Sixth: Once a year, the Social Security Administration sends you a statement, you should read it. Check for missing earnings. If you see a year with oddly low income, and you know you worked, speak up. Just like the rest of us, the Social Security office sometimes makes mistakes—just like acid wash jeans or Milli Vanilli.
Seventh: If you’re working while claiming Social Security benefits and you’re under FRA, Social Security takes $1 for every $2 you earn over the limit. In 2025, that limit is a little over $23,000. Pass it, and they start docking you. Hit FRA, and the rules relax a bit.
Eighth: What about taxes? Up to 85 % of your benefits could be taxable. Plan for it, or risk Uncle Sam crashing that retirement party.
Ninth: Don’t copy your neighbor’s plan just because he brags about it around the firepit. Your strategy choice should depend on your health, your finances, and your goals.
There you go—9 strategies to help you squeeze the most out of Social Security. Time it right, know your options, keep an eye on the details, and you could turn ‘just enough’ into ‘plenty.’ To get some more helpful information, download our Social Security Handbook, it’s free and a super valuable resource.
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IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
• Pure Financial Advisors, LLC, is not affiliated with any government agency, including, but not limited to the Social Security Administration.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification
