Claiming Your Social Security Benefit

When it comes to planning out your retirement income, Social Security is likely to play a major part of meeting your monthly budget. That’s why at Clear Income Strategies Group, we help our clients optimize their Social Security claiming strategy, especially for the long-term.

In our view, there are sometimes reasons to start collecting Social Security early at 62, like poor health or loss of a job maybe. But remember, if you file early, that payment is then fixed for life, and your monthly check could be as much as 25% less than what you would have gotten if you waited to your full retirement age, which is around age 67 depending on your month and year of birth.

Social Security’s earnings rules can create a surprise if you do not understand the timing of everything.

When you claim is an important decision because if you go back to work after filing for your Social Security benefit there are earnings rules. Maybe you become a consultant, or maybe you return to a job. If you file early and you decide to go back to work because you need or want more income coming in, you will be subject to earnings limits until you reach your full retirement age.

In fact, if you are both working and claiming your benefit before your full retirement age, Social Security will withhold $1 for every $2 you earn above the $24,480 limit for 2026.

As an example, that could mean that instead of getting your $2,600 Social Security check, you’re only getting $1,300 while working until you reach your full retirement age.

As you get older, the limits relax. In the year that you reach full retirement age, the Social Security Administration deducts $1 in benefits for every $3 you earn up to the $65,160 limit for 2026. And in the month when you reach full retirement age, earnings limits go away, no matter how much you earn. While Social Security will recalculate your benefit amount to give you credit for the months we reduced or withheld benefits due to your excess earnings, this may not be right for your situation.

We can help you run numbers and figure out your long-term benefit and retirement income plan. Some people may be better off waiting. If you wait to file to age 70, in the years from your full retirement age to age 70 your benefit will increase by 8% per year. At age 70, everyone should file or have filed, because your benefit won’t increase after that age.

Social Security planning is imperative. Whether or not it makes sense to file early because of health, or to claim Social Security early and keep working, or to wait to age 70 is a very personal decision that can mean thousands of dollars to you throughout the decades you may live in retirement. It’s one of the puzzle pieces we help you put together when it comes to your retirement.

The fact is, everyone is different, and you should have a financial advisor create a retirement income plan that is personalized to you, your earnings, and your situation. That’s what we do. We create a plan that helps you factor in everything, including Social Security. Let’s talk!