Social Security can serve as a safety net for many retirees, sometimes acting as a primary source of income. However, the program is highly complex with over 500 ways to claim benefits. Even one or two missteps could leave thousands of dollars on the table over the course of your retirement.

Knowing how to maximize your benefits requires careful planning and a thorough understanding of the different factors at play. Joel Johnson, CFP® joins Retire Wiser with NBC Connecticut to address key questions on how to get the most from your Social Security benefits.

How Should I View Social Security?

A common mistake people make when planning for retirement is underestimating the value of Social Security within their total financial plan. Rather than thinking of Social Security as just a stream of monthly payments, treat it as a substantial asset – one potentially worth upwards of $400,000 to $500,000. By shifting your perspective, you can better coordinate your Social Security benefits with other sources of retirement savings, establishing the most tax-efficient sequence of withdrawals.

When Should I Claim My Benefits?

Choosing when to collect Social Security is one of the most important decisions you’ll make in retirement planning. Many factors go into determining the ideal withdrawal strategy, including your life expectancy, health status, and retirement goals. While conventional wisdom suggests delaying benefits until age 70 to receive the maximum payout, this is not the right strategy for everyone. It depends whether you live long enough to make waiting worth it. A financial advisor can provide a custom analysis of your retirement needs to help you select the optimal timing of your benefits.

Who Should Collect First, Me or My Spouse?

Another key aspect of your withdrawal strategy is determining whether you or your spouse should claim benefits first. If you are married, divorced (and were married for at least 10 years), or widowed (and your spouse qualified for benefits), you may be eligible for spousal benefits.

Spousal benefits allow you to collect half of your spouse’s or ex-spouse’s full retirement age benefit. In some instances, it may be more beneficial for one spouse to collect benefits based on the other’s higher earnings, rather than claiming separately. A customized strategy can help maximize the total lifetime benefits you both receive.

How Do I Choose the Right Strategy?

Ultimately, Social Security should be viewed in the context of your whole financial picture. Navigating its complexities – from timing your withdrawals to coordinating with other accounts – requires proper retirement income planning. By working with a financial advisor, you can choose a claiming strategy that’s right for you.