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Social Security Planning

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Last updated:  October 2026

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Choosing When to Claim is One of the Biggest Income Decisions in Retirement.

 

Social Security is the main source of income for many retirees. It pays for life, and it rises with inflation. When you start it can change your monthly check by a large amount, and once you choose, it is hard to undo.

 

I help pre-retirees and retirees see how the claiming decision fits with the rest of their plan, including savings, taxes, health, and a spouse's benefits. This page explains the main ideas and links to my articles and to trusted outside sources.​​​​​​​​​​​​​​​​​

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The Basics

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  • Full retirement age is between 66 and 67, depending on your birth year. For anyone born in 1960 or later, it is 67. At that age you get your full benefit.

  • You can start as early as age 62. The benefit is smaller for each month that you start collecting early, but you collect it for more years.

  • You can wait until age 70. Each month you delay past full retirement age raises your benefit, by about 8 percent a year.

  • The change lasts for life. An early start means a smaller check every month, and a later start means a larger one. Cost-of-living increases apply either way.

 

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The chart above shows an example. For someone with a full retirement age of 67, starting at 62 means about 30 percent less each month, and waiting until 70 means about 24 percent more.

 

Learn more from the Social Security Administration: Retirement age and benefit reduction and My Social Security account.

 

 

What to Think About Before You Claim

 

There is no age that is right for everyone. These are the main questions I look at with clients.

  • How long might you live?  If you are in good health and your family tends to live long, waiting usually pays off more. A married couple should look at how long either spouse may live, not just one. SSA has a simple life expectancy calculator to start with.

  • What other income do you have?  Pensions, savings, and investments can help cover your bills while you wait. If you do not have other income, starting earlier may be needed. The idea of a guaranteed steady income base to cover essential expenses is covered in How to Build a Secure Retirement Income Foundation. If you want to wait but need income in the meantime, see How to Create an Income Bridge to Delay Social Security.

  • Are you married?  When one spouse passes away, the survivor keeps the larger of the two benefits. For that reason, it often makes sense for the higher earner to wait as long as possible, while the lower earner may start sooner. Read more in my article Social Security Claiming Strategies: When to Claim. The free tool Open Social Security helps couples compare various combinations of claiming ages, and the Consumer Financial Protection Bureau has a helpful guide on planning your claiming age, including survivor benefits.

  • Do you plan to keep working?  If you claim before full retirement age and earn above a yearly limit, some benefits are held back for a time. After full retirement age, there is no limit. The Social Security booklet Retirement Benefits explains the rules.

  • How do taxes fit in?  See the next section.

 

 

Social Security and Taxes

 

Part of your Social Security may be taxable. How much depends on your other income, such as IRA withdrawals, pensions, interest, and wages. Up to 85 percent of your benefit can be included in your taxable income. The income levels that trigger this have not been adjusted for inflation since they were set, so more people are affected each year.

 

Delaying Social Security can also create a period of lower income early in retirement. In those years, you may be able to move some IRA money to a Roth IRA at a lower tax cost. That can reduce required withdrawals later and may lower the tax on your benefits.

 

Read more:​

 

From the government: SSA's page on income taxes and your benefit and the IRS's Are my Social Security benefits taxable? tool.

 

 

Social Security If You Live Overseas

 

U.S. citizens can generally receive Social Security while living in most foreign countries. A few countries are restricted, so it is worth checking before you move. Some people also get a questionnaire from Social Security every year or two, and benefits can stop if it is not returned.

 

Medicare is different. Outside the U.S. it generally only covers emergency care for relatively short-term travelers and typically does not cover non-emergency care, so you will want a plan for health coverage.

 

Helpful links:

 

 

Will Social Security be there for me?

 

The program is not expected to disappear, but it does face a shortfall. The 2026 Trustees Report projects that the combined trust funds can pay full benefits until 2034. After that, incoming payroll taxes and other revenue would cover about 83 percent of scheduled benefits unless Congress makes changes. These are projections and they shift from year to year. You can read the latest in the Trustees Report summary.

 

Many planners handle this by checking whether a retirement plan still works if Social Security turns out to be somewhat lower than expected. That is something we can look at together.

 

 

Steps You Can Take Now

 

  1. Set up your My Social Security account and check that your earnings record is correct. Errors can lower your benefit.

  2. Look at your estimated benefit at 62, at full retirement age, and at 70.

  3. List your other income and your expenses for the first years of retirement.

  4. If you are married, compare claiming ages for both of you, using a tool such as Open Social Security.

  5. Consider taxes and Medicare costs along with the benefit amount.

  6. Talk it through before you decide.

 

 

How I Can Help

 

I can help you:

  • Understand your benefit options and what they mean for your monthly income

  • Compare claiming ages for you and your spouse

  • See how Social Security fits with your savings, withdrawals, and taxesPlan how to cover expenses if you decide to wait

  • Think through the effects of Roth conversions and Medicare premiums

  • Prepare questions for your tax professional

 

I work with clients in Ohio and across the United States, by video call. See also my page on Retirement Income Planning.

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Ready to Talk It Over?

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If you would like help thinking through your Social Security decision, schedule a free introductory Discovery Session. We can talk about your situation and questions, with no obligation.

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Schedule a free introductory Discovery Session

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Related Links:

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Frequently Asked Questions

 

What is the best age to claim Social Security?

There is no single best age. Claiming at 62 gives a smaller check for more years, and waiting until 70 gives the largest monthly check. Your health, family history, other income, taxes, and marital status all matter. For married couples, it often helps for the higher earner to delay, because the surviving spouse keeps the larger of the two benefits.

 

How much is my benefit reduced if I claim early?

It depends on your birth year and how many months early you claim. For people whose full retirement age is 67, claiming at 62 lowers the monthly benefit by about 30 percent, and waiting until 70 raises it by about 24 percent. The change is permanent, though yearly cost-of-living increases still apply.

 

Can I change my mind after I start benefits?

Only in limited ways. You can withdraw your application within the first 12 months, but you must repay all benefits you received. After you reach full retirement age, you can also suspend benefits to earn higher payments later. Otherwise, it is best to treat the decision as permanent.

 

Are Social Security benefits taxable?

They can be. Depending on your other income, up to 85 percent of your benefits may be included in your federal taxable income. This does not mean an 85 percent tax rate. The income thresholds are not adjusted for inflation, so more retirees are affected over time. Some states also tax benefits, but most do not.

 

Can I work and collect Social Security at the same time?

Yes. If you claim before full retirement age and earn above a yearly limit, Social Security holds back some benefits. Your monthly amount is recalculated at full retirement age to account for the amounts withheld. Once you reach full retirement age, there is no reduction no matter how much you earn. The limits change every year, so check the Social Security Administration website.

 

Can I receive Social Security if I live overseas?

In most cases, yes. U.S. citizens can generally receive benefits while living in most foreign countries, but there are a few countries where Social Security cannot send payments. The Social Security Administration has a Payments Abroad Screening Tool to check your situation. Medicare generally does not cover routine care outside the U.S., so plan your health coverage separately.

 

What happens to Social Security when a spouse dies?

The surviving spouse generally keeps the larger of the two benefits, not both. Survivor benefits can start as early as age 60 at a reduced amount. This is why the higher earner's claiming age matters so much for married couples.

 

Will Social Security run out of money?

The program is not expected to disappear, but it does face a funding shortfall. The 2026 Trustees Report projects that the combined trust funds can pay full benefits until 2034. After that, incoming revenue would cover about 83 percent of scheduled benefits unless Congress acts. The retirement fund alone is projected to reach that point in late 2032, at about 78 percent. These are projections and they change each year.

 

Can you tell me exactly when I should claim?

I can help you understand your options, compare how different claiming ages fit into your overall retirement plan, and prepare questions for other professionals. The decision is yours, and the Social Security Administration can confirm your benefit amounts.

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This page is for general education and is not tax, legal, or investment advice. Social Security rules, tax rules, and projections change. Confirm your own benefit amounts with the Social Security Administration and consult a qualified professional before making decisions.

Bar chart showing a monthly benefit of $1,400 at age 62, $2,000 at age 67, and $2,480 at age 70, for a person with a full retirement age of 67 and a $2,000 benefit at that age.
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