Social Security: Six Common Questions, Answered

When it comes to retirement planning, Social Security is more than just a monthly check — it’s a powerful tool that can shape your income strategy, tax exposure, and overall financial confidence in retirement.

Below are six of the most common questions clients ask us about Social Security. The answers might surprise you — and they could help you make more confident, informed decisions about your future.

1. How are my benefits calculated?

Social Security uses your highest-earning 35 years of work to determine your benefit. If you have fewer than 35 years or several low-income years, it can lower your average. Working a few more years — especially if you’re earning more now than earlier in your career — can replace those lower-earning years and potentially boost your lifetime benefits.

2. Is it better to delay benefits if I have other income?

Often, yes. For each year you delay collecting Social Security past your full retirement age (up to age 70), your monthly benefit increases by about 8%. That’s a solid, guaranteed return — especially if you can tap into other income sources while you wait.

3. How does Social Security fit into my overall retirement income plan?

Think of it as a base layer of income that’s both guaranteed and inflation-adjusted. That helps reduce the pressure on your investment portfolio and adds stability to your cash flow — especially during market downturns when you may not want to sell assets.

4. Are my Social Security benefits taxable?

It depends on your total income. If your income is above certain thresholds, up to 85% of your benefits could be taxable. The IRS uses a formula called “provisional income,” which includes wages, IRA distributions, and other taxable income. With the right planning, you may be able to reduce how much of your Social Security is taxed — potentially saving thousands over time.

5. Can I work and collect Social Security?

Yes — but if you start collecting before your full retirement age, your benefits may be temporarily reduced if your earnings exceed a certain limit. Once you reach full retirement age, you can work as much as you like without impacting your benefits.

6. What happens to my benefits if I’m widowed?

You may be eligible to receive up to 100% of your late spouse’s benefit, especially if you wait until your full retirement age. You won’t receive both benefits in full — just the higher of the two. And if your spouse delayed claiming benefits, your survivor benefit could be even higher. In some cases, strategic timing can allow you to claim one benefit and switch to another later.

Need Help Deciding When to Claim? Let’s Talk.

Social Security is more than a government check — it’s a foundational piece of your retirement income plan. If you’d like to explore how it fits into your broader strategy, or if you’re wondering when the right time to file might be, we’re here to help.

Give us a call or schedule an appointment, and we’ll find a time to talk. The meeting is free and there’s no obligation — just good information and a chance to get some clarity about which strategy is the best for you.