How to Maximize Social Security Benefits

Social Security plays a big role in retirement income, but many seniors don’t realize they have options to maximize their benefits. A few smart strategies can help you get the most out of what you’ve earned, ensuring a more comfortable and secure retirement.

Delay Claiming (If You Can)

While you can start collecting Social Security as early as age 62, waiting can significantly increase your monthly payments.

• Claiming at 62 results in a permanent reduction in benefits.
• Waiting until full retirement age (67 for most people) means you’ll receive 100% of your benefit.
• Delaying beyond that—up to age 70—can increase your monthly payment by 8% per year.

If you don’t need Social Security immediately, waiting can pay off in the long run.

Work a Little Longer

Your Social Security benefits are based on your highest 35 years of earnings. If you’re still working and earning a good salary, each additional year can replace a lower-earning year, increasing your final benefit amount.

Even part-time work in senior living Santa Fe NM can help boost your total earnings and maximize future Social Security payments.

Take Advantage of Spousal and Survivor Benefits

If you’re married, divorced, or widowed, you may be eligible for additional Social Security benefits:

• Spousal Benefits – You can claim up to 50% of your spouse’s benefit if it’s higher than your own.
• Divorced Spouse Benefits – If you were married for at least 10 years, you may still qualify for spousal benefits.
• Survivor Benefits – Widows and widowers can collect benefits based on their late spouse’s earnings.

Understanding these options ensures you’re not leaving money on the table.

Watch Out for Taxes on Social Security

Yes, Social Security can be taxed depending on your total retirement income.

• If you file as an individual and earn more than $25,000 per year, part of your Social Security may be taxed.
• For married couples filing jointly, the income threshold is $32,000.

Strategizing withdrawals from 401(k)s, IRAs, and other income sources can help reduce your tax burden and maximize the money you keep.

Plan for Medicare and Health Costs

Medicare premiums are automatically deducted from Social Security once you enroll. If you plan to delay Social Security, make sure you have enough savings to cover healthcare costs.

Some seniors in senior housing Santa Fe NM opt to claim Social Security just to cover Medicare costs, while others wait to maximize overall benefits. The right decision depends on your personal financial situation.

Making the Most of Your Retirement Income

Social Security isn’t just a check—it’s a strategic tool. By choosing the right time to claim, working a little longer, and understanding spousal benefits, you can increase your monthly payments and create a more financially stable retirement in senior housing.