Social Security

Why Care?

Social Security is the foundation of most Americans' retirement income — yet most people make claiming decisions that cost them tens of thousands of dollars.

Your benefit grows by approximately 8% for every year you delay claiming between age 62 and 70. That's a guaranteed, inflation-adjusted return better than most investments.

Social Security benefits are partially inflation-protected through annual Cost of Living Adjustments (COLAs), making them more reliable than most fixed income streams.

For married couples, the claiming strategy is particularly complex and important. Coordinating when each spouse claims can add hundreds of thousands in lifetime benefits.

It won't replace your full income — the average benefit replaces roughly 40% of pre-retirement earnings — but it forms a critical income floor that no market downturn can take away.

Delay claiming as long as possible — ideally to age 70. Each year of delay increases your benefit by ~8%. If you're in good health and can afford to wait, delaying is almost always the right financial decision.
Check your earnings record at ssa.gov. Errors can reduce your benefit. Review it every few years and correct any mistakes promptly.
Understand the spousal benefit. A non-working or lower-earning spouse can claim up to 50% of the higher earner's full retirement benefit.
Don't claim early just to 'get your money back.' Claiming at 62 permanently reduces your benefit by up to 30%.
Understand the earnings test. If you claim before Full Retirement Age and continue working, benefits are temporarily reduced above an earnings threshold.
Factor in taxes. Up to 85% of Social Security benefits may be taxable depending on combined income. Work with a tax advisor to understand the implications.