Social Security Strategies: Making the Most of What You’ve Earned

For many people, Social Security forms the foundation of their retirement income plan. Yet despite being such a central piece, it’s often misunderstood — when to file, how benefits are taxed, and how spousal rules really work.

In my experience as a fiduciary financial planner, the biggest challenge isn’t necessarily how Social Security works, but how it fits within the rest of your retirement plan. A thoughtful strategy can help you get more value from the benefits you’ve already earned, while reducing surprises later on.

1. Timing Matters — But Context Matters More

One of the first decisions retirees face is when to claim benefits. You can begin as early as age 62, but doing so reduces your monthly benefit permanently. Waiting until your full retirement age (sometimes between 66 and 67, depending on birth year) gives you full benefits, and delaying to age 70 earns delayed retirement credits.

That sounds simple, but the right choice depends on your situation — your health, longevity expectations, whether you plan to keep working, and how the benefit fits into your broader retirement planning.

I’ve worked with clients who were ready to file early just to “lock it in,” but found that doing so reduced a spouse’s survivor benefit. Others waited until 70 because it aligned better with other income sources. There’s no universal rule — the goal is to coordinate timing in service of your full retirement plan.

2. Don’t Overlook Spousal and Survivor Benefits

Many couples don’t realize how important spousal and survivor benefits can be for their lifetime income.

• A spousal benefit can be up to 50% of the worker’s full retirement benefit (at full retirement age) if you qualify.
• A surviving spouse may be eligible for a benefit based on the higher of the two spouses’ records.

Because of this, timing for both spouses matters. Increasing one spouse’s benefit can also enhance the survivor benefit for the other —something I often review with couples here in Phoenix and elsewhere when we discuss their full income strategy.

3. Keep Taxes in Mind

Social Security benefits can be taxable, depending on total income. Up to 85% of your benefits may be subject to federal income tax if your combined income exceeds certain thresholds.

That’s why coordinating withdrawals from traditional IRAs, Roth accounts or taxable investments matters — it influences how much of your Social Security benefit becomes taxable. As a fee-only financial advisor, one of my roles is helping clients view Social Security not as a standalone benefit but as part of a tax-aware income strategy.

4. Avoid Relying on Rules of Thumb

It’s tempting to adopt simple rules like “Always wait until age 70” or “Claim as soon as you’re eligible,” but those don’t always fit individual circumstances.

For example, I once worked with a client whose health concerns made waiting until age 70 less practical. Claiming at 63 gave her more flexibility early in retirement, which mattered for her quality of life. In a different case, delaying benefits for a higher-earning spouse made perfect sense because it protected the survivor benefit and supported their long-term income plan.

Both choices were sensible — because they aligned with the person’s unique goals. Personal context matters more than any one-size-fits-all rule.

5. Make Your Social Security Part of the Bigger Picture

Social Security doesn’t operate in a vacuum. It interacts with your savings, investments, taxes, healthcare, and legacy objectives.

The most effective Social Security strategy is one that’s integrated into your full retirement plan — so the benefit supports your priorities, not just your income. When planned thoughtfully, Social Security becomes a coordinated piece of your overall strategy for financial clarity and purpose.

Bringing It All Together

Your Social Security decision is one of the few irreversible ones in retirement, which makes it worth getting right. With the right guidance and context, you can make choices that align with your financial goals, tax picture and family situation — and ultimately, help you make the most of what you’ve earned.

If you’re nearing retirement and want to understand how Social Security fits into your full plan, a conversation can be an important next step.

You’ve earned these benefits — now make sure they work hard for you.

Schedule a short Discovery Call with Stillwater Financial Planning to explore how a planning-first, fee-only, fiduciary approach can help you coordinate your Social Security strategy within your full retirement blueprint.

‍

Disclaimer: This is not an offer to buy or sell securities. No investment process is free of risk and there is no guarantee that the investment process described herein will be profitable. Investors may lose all of their investments. Past performance is not indicative of current or future performance and is not a guarantee.

Investment advice offered through IHT Wealth Management, a registered investment advisor