Social Security strategies

Slide 1: Your Social Security Benefit

  In this lesson, we’re talking about one of the most important foundations of your retirement: Social Security. This benefit is based on your 35 highest-earning years. That’s why working for at least 35 years is important —if you have fewer, those 'zero-dollar' years are averaged in, permanently lowering your check. Every year you've worked and every dollar you've earned up to the wage cap has been building this asset for you.

Slide 2: The Power of Delaying

  One of the most powerful tools you have is time. While you can claim as early as age 62, doing so comes with a permanent reduction. If you wait until your Full Retirement Age—usually 66 or 67—you get 100% of your benefit. But here is the exciting part: if you can wait until age 70, your benefit increases by 8% every single year. Think about that—a guaranteed 8% return backed by the government. For example, a $2,000 benefit at age 67 grows to $2,640 at age 70. That’s extra money in your pocket every month for the rest of your life.

Slide 3: Delaying Social Security

   Your full retirement age is based on your birth year. This chart shows the effects of early or delayed retirement on your benefits. As you can see, if you begin receiving benefits before your full retirement age, your monthly amount will be reduced to 70% to 75% of the total. However, if you delay collecting your benefit until after your full retirement age, it will increase to 124% or 132% of your full amount.

Slide 4: Individual strategies for Social Security – wait

  When you are filing as an individual, the decision really comes down to one question: How do you want to manage your longevity risk?

If you are healthy and have enough savings to get by, waiting until age 70 is almost always the winner. You simply cannot find a guaranteed 8% return in the private market. By waiting, you are maximizing your check to protect yourself against inflation when you are older.

Many people believe that the day they stop working must be the same day they claim Social Security, but that doesn't have to be the case. We call this the 'Retirement Bridge' approach. During those 'gap' years, you live off your 401(k), pension, or personal savings to cover your expenses.

Slide 5: Individual strategies for Social Security - early

  However, I want to be encouraging to everyone: there is no 'wrong' age, only a 'best' age for your circumstances. If you need the money at 62 to keep the lights on, or if your health isn't great, take the benefit. That’s what it’s there for.

Just be careful if you plan to keep working while claiming early. If you earn over the limit—about $24,480 this year (2026) —Social Security will temporarily hold back part of your check. It’s not a tax—you get it back later—but it can be a big surprise to your monthly budget if you aren't prepared for it.

Slide 6: Break-Even point for individual benefits

  This table illustrates monthly benefit amounts and the cumulative total benefits received from ages 62 to 90. Depending on your projected longevity, you can evaluate this data to determine your optimal claiming year. The break-even point where claiming at age 70 exceeds claiming at 62 occurs at age 80; for claiming at age 67, the break-even point is a little under age 82. For a more detailed analysis, please refer to the online tools listed in the Resource Section of this lesson.

Slide 7: Why Strategy Matters for Couples

  If you are married, your Social Security decisions are even more impactful. These choices are largely permanent and will affect your combined household income for decades. By coordinating your claiming strategies, you aren't just looking at two separate checks; you’re looking at a strategy that can add tens of thousands of dollars to your lifetime wealth. We have to consider your age differences and your individual earnings histories to find the 'sweet spot' for both of you.

Slide 8: Maximizing Benefits for Couples

  The rule for couples is often this: Maximize the higher earner’s benefit. If the spouse with the larger work history waits until age 70, they aren't just maximizing their own check—they are maximizing the 'Survivor Benefit.' This is a final gift of financial security. You’re ensuring that the person who lives the longest will have the largest possible monthly check to rely on.

Slide 9: The "62/70" Split Strategy

  So, how do we actually do this? One of the most popular approaches is what we call the '62/70 Split.' It’s a balanced strategy that provides immediate income while still allowing for massive long-term growth. Depending on your health and savings, you might also look at age 66 or other combinations, but let's see how the 62/70 version works.

Slide 10: How the 62/70 Split Works

  In this strategy, the lower-earning spouse claims early—perhaps at 62. This brings immediate cash into the household to help pay bills or enjoy early retirement. Meanwhile, the higher earner delays until 70. By doing this, that larger check earns those 8% annual credits, locking in a maximum benefit. This protects your future because that larger amount is now the 'floor' for the rest of both of your lives.

Slide 11: Maximizing the Survivor Benefit

  When one spouse passes away, the smaller of the two monthly checks stops, and the survivor begins receiving 100% of the higher check. By delaying that larger benefit today, you are protecting your partner against inflation and making sure they have enough to live on, no matter how long they live.

Slide 12: Cumulative Household Benefits Comparison

   This table illustrates monthly benefit amounts and the cumulative total benefits received from ages 62 to 90. While you can use this data to determine an optimal claiming year based on projected longevity, married couples have significantly more strategic options than individuals. As discussed in earlier slides, each spouse can claim at a different age. These various combinations result in different cumulative household totals and varying levels of survivor benefit protection. For a more detailed analysis, please refer to the online tools listed in the Resource Section of this lesson.

Slide 13: The Spousal Benefit Rule

  What if one spouse has a limited work history? Even with zero earnings, you can receive a Spousal Benefit of up to 50% of your partner’s Full Retirement Age (FRA) amount. If your own benefit is small, Social Security automatically 'tops you off' to reach that higher total.

Keep in mind two rules: first, this 50% is based on your partner's FRA amount, not the extra credits they earn by waiting until 70. Second, you must be at your own FRA to receive the full 50%; claiming early results in a permanent reduction. Finally, there is no 'double-dipping'—you simply receive the higher of the two possible benefit totals.

Slide 14: Timing Makes All the Difference – Review

  "To review: Timing is everything. Age 62 is the earliest, but comes with a 'pay cut.' Age 66 or 67 is your baseline. And Age 70 is your maximum—the gold standard for monthly income. Each year you wait between 62 and 70 represents a significant raise that lasts a lifetime."

Slide 15: A Coordinated Approach

  A successful plan for a couple covers three phases: it provides

immediate income to enjoy your early retirement years,
growth phase where your future benefits grow while waiting until age 70
providing long-term security for both you and your spouse.

Of course, the strategy for the absolute maximum household payment is for both partners to wait and claim their Social Security benefits at age 70.

Slide 16: Online Social Security Software

  For those of you who like to 'Do It Yourself,' there are good software tools available online. If you are comfortable with a computer, these tools can run hundreds of different scenarios for you and your spouse to find the exact month and year that maximizes your total lifetime benefits. There is a small fee.

Slide 17: Your Social Security Action Plan

  Here is your homework: Go to ssa.gov, create your account, and review your earnings history for any errors. Use the modeling tools to see how different ages change your numbers. Please, don't guess with your future. Get the facts, get online, and take charge of your retirement. Your future self will thank you!"

Slide 18: SSA.GOV web site resources

  There will be another video going over various resources and tools that will help you make a decision.

Click on the link below to open the online quiz.  The quiz will open in a new tab.

Note: To receive your "Badge of Completion" you will need include the your name, email and score 100% on the quiz. You can take the quiz more than once.  Your highest score will be used.

Link to online quiz  (opens in new tab)