Social Security: Income Planning for the Future
One of the biggest topics we consistently get asked about is Social Security. While it can be a complex system of calculations for filing, this article will hopefully make those decisions a little easier if you have not filed them yet.
Filing for Social Security retirement benefits is less about paperwork and more about timing. Your claiming decision is effectively a “guaranteed, inflation-adjusted annuity” choice, so a few smart moves can materially change total lifetime income.
For most, it makes sense to delay filing until at least the Full Retirement Age (FRA), which is 67. The typical “breakeven age”, meaning the cumulative total benefits paid being the same amount, from filing at age 62 (earliest) vs. FRA age 67, is usually around age 78-79. This means all future additions to income above this age would cumulatively be higher if the filing is done at FRA, especially if you have longevity in your family and if you’re still working.
You can claim retirement benefits as early as age 62, but claiming before your FRA permanently reduces your monthly check, in addition to reducing any potential spousal benefits. FRA depends on birth year (often 66–67 for today’s retirees). If you delay claiming past FRA, your benefit grows until age 70, when increases stop. Very few people wait until age 70, even though that is the maximum credit.
Most people apply online through a “my Social Security” account from the Social Security Administration (ssa.gov). You can also apply by phone or at a local office.
Maximizing benefits: the levers that matter
- Delay if longevity risk is your main concern. The tradeoff is simple: lower checks sooner versus higher checks later. For many households, delaying the higher earner’s benefit is the strongest “longevity insurance” move because it raises the survivor benefit, too.
- Coordinate with work and the earnings test. If you claim before FRA and keep working, benefits can be temporarily withheld if earnings exceed annual limits (and the limits are higher in the year you reach FRA). For 2026, the exempt amount is $24,480 if you’re under FRA, and $65,160 in the year you reach FRA.
- Use spousal and survivor planning. Even if you have a smaller earnings record, you may qualify for spousal or survivor benefits that change the best filing age strategy—especially for married couples with uneven lifetime earnings.
Filing tips that prevent costly delays
- Apply a few months ahead of when you want payments to start, especially if you’re also transitioning to Medicare at 65.
- Check your earnings history before filing; incorrect wage records can reduce your benefit calculation.
- Gather documents early. Common needs include your Social Security number record and proof of age.
The future of Social Security for retirees
Social Security is not expected to “disappear,” but financing is a real issue. The 2025 Trustees Report projects the trust fund reserves could be depleted in 2033; if Congress makes no changes, incoming revenue would still cover about 77% of scheduled benefits at that point. Historically, lawmakers have addressed shortfalls through combinations of revenue increases, benefit formula adjustments or changes to eligibility—so the practical planning takeaway is to build flexibility (other savings, adaptable retirement timing), while not assuming benefits go to zero. It is very likely, based on historical precedent, that the FRA could be increased again for younger workers, and/or the FICA tax increased on payroll for higher revenue into the system.
When looking at income planning, it’s important to get a second opinion on how your overall income can be maximized efficiently when taking all income sources into consideration to compare filing strategies. Consider any pensions, annuities, dividend income, capital gains, rental income, asset sales, RMDs from retirement accounts and any other forms of income to reach your financial goals.
For a complimentary financial planning consultation or second opinion review, reach out to Douglas Marion with Advanced Wealth Strategies, conveniently located in Cornelius at 19520 W. Catawba Avenue. Feel free to call or text 704-765-3653 or email Douglas@PlanWithAWS.com. As fiduciaries, their independent firm will prioritize your best interests.
Investment Advisory Services offered through EverStar Asset Management, LLC., a SEC Registered Investment Adviser. EverStar Asset Management, LLC and Advanced Wealth Strategies, Inc. are independent entities. SEC registration does not constitute an endorsement of the firm by the Commission, nor does it indicate that the advisor has attained a particular level or skill or ability. Opinions expressed are subject to change and are not intended as investment advice or to predict future performance. Advanced Wealth Strategies does not offer legal or tax advice.
