Social Security is a crucial piece of your overall retirement income plan. Therefore, your claiming strategy should exist within the broader context of your finances, personal life, and vision of retirement. Factors to consider in this decision include your retirement savings, potential corporate pensions, projected living expenses, health status, family longevity, and marital status.

Social Security has thousands of rules, many of which are essential for maximizing its benefits. For example, there’s a Social Security earnings limit if you claim benefits before your full retirement age.

Additionally, federal taxes on your benefits depend on your total combined income rather than your age at application. Exceeding a certain threshold means 85% of your benefit will be taxable instead of 50%. This distinction can significantly impact your decision on when to claim.

A common misconception is that delaying Social Security means you’ll receive a higher benefit. While your monthly benefit may be higher, the total lifetime amount could be the same or even lower. Your health and family longevity are important factors to consider.

At Johnson Brunetti, we provide the insight and expertise to help you determine the best claiming strategy. By combining a qualitative and quantitative perspective, we tailor our recommendations to your ideal vision of retirement. For instance, we may advise a retiree to take a partial benefit at age 62 if their savings are insufficient. Or we may advise another retiree to claim early to fund their dream of traveling or starting a business.