How to Plan and Optimize Your Social Security Benefits

Whether you're wondering how to plan for Social Security, how to avoid filing mistakes, or how to optimize your retirement income, this guide will walk you through the 10 most important things to know before you file.

1. Your Children May Be Eligible for Social Security Benefits

Social Security isn't just for retirees—it can support your family too. Many people are unaware that their children or dependents may qualify for benefits based on their record.

If you’re eligible for Social Security, so might your child:

• Benefits apply to children up to age 18.
• Those still in high school may qualify until 19.
• Unmarried children who became disabled before age 22 may qualify.
• If you’re caring for a child under 16, you may also be eligible for a caregiver benefit.

These benefits can provide vital income for families raising children later in life or supporting dependents with disabilities. 

2. Divorced? You May Still Qualify for Spousal Benefits

Many retirees miss out on benefits they earned through a previous marriage. If you were married for at least 10 years and haven’t remarried, you may be able to collect benefits on your ex-spouse’s record.

To qualify:

• You must be age 62 or older.
• Your ex must be receiving benefits—or you must have been divorced for at least two years.

This strategy does not reduce your ex-spouse’s benefit and could significantly boost your monthly income.

Want a personalized strategy? Find a Social Security expert near you.

3. Retroactive Benefits Can Reduce Your Lifetime Income

If you delay filing past Full Retirement Age (FRA), you earn delayed retirement credits. But accepting retroactive benefits can reduce those credits and lower your future monthly payment.

Here’s what to consider:

• Up to six months of retroactive benefits are available if you’re past FRA.
• But accepting them means losing six months of delayed retirement credits—roughly a 4% reduction.

This trade-off may be fine if you have a shortened life expectancy, but it’s often a poor decision for long-lived retirees.

Before choosing retroactive benefits, talk to a pro. Our NSSA®-certified advisors can help analyze what’s best.

4. Social Security and Medicare Decisions Are Intertwined

Claiming Social Security affects your Medicare enrollment—sometimes in surprising ways.

Here’s what you need to know:

• Filing for Social Security automatically enrolls you in Medicare Part A at age 65.
• If you’re not actively working with creditable coverage, you must enroll in Medicare on time or face penalties.
• Higher-income individuals may face IRMAA surcharges, increasing monthly Medicare costs.

Coordinating these timelines is essential to protect both your income and your healthcare access.

5. The Earnings Test Can Reduce Early Benefits

Planning to work while collecting benefits? If you file before your FRA, the Social Security earnings test may reduce your benefit.

For 2025:

• If you're under FRA, you can earn up to $22,400 before benefits are withheld.
• In the year you reach FRA, you can earn up to $62,160 until your birthday month.
• After FRA, there’s no limit—you keep all your benefits regardless of income.

Careful planning can ensure you aren’t surprised by benefit reductions during your working retirement years.

6. Your Filing Decision Affects Your Spouse’s Future

Social Security is often a joint lifetime benefit. Claiming early may reduce survivor benefits for your spouse.

Consider:

• If you claim early, your monthly benefit is reduced.
• This lower amount becomes the baseline for your surviving spouse, who may depend on that income.

Couples should coordinate claiming strategies to ensure they’re maximizing lifetime household income.

7. Spousal Benefits Require Timing and Strategy

Spousal benefits can equal up to 50% of your spouse’s benefit—but only if the rules are followed carefully.

Key facts:

• The wage earner must already be receiving benefits.
• The spouse must be at least 62 to claim.
• Spousal benefits don’t increase by delaying past FRA, so timing matters.

Missing the right window can cost you thousands over time.

8. Widowed? You Have Unique Claiming Flexibility

Surviving spouses have options that married couples and divorcees do not. Done correctly, this can help maximize lifetime income.

Options include:

• Claiming a reduced survivor benefit at age 60, then switching to your own later.
• Starting your own benefit early, then switching to an unreduced survivor benefit.

Deciding which to take first depends on multiple factors—life expectancy, benefit size, and income needs.

A qualified expert can help map out the best path. Book a consultation.

9. Your Social Security Benefit Is Based on 35 Years of Earnings

The SSA calculates your benefit using your highest 35 years of earnings, adjusted for inflation (indexed).

Here’s why this matters:

• If you haven’t worked 35 years, zeros are averaged in.
• Earnings after age 59 still count—but are not indexed for inflation.

If you’re in your 60s and still working, each additional year of higher income can potentially increase your benefit by pushing out a zero or a low-earning year.

10. Work with a Certified Social Security Advisor

Filing isn’t just about age—it’s about strategy. A mistake here could cost you tens of thousands of dollars over your lifetime.

To avoid costly errors:

• Partner with an expert who holds the NSSA® (National Social Security Advisor) designation.
• NSSA® certificate holders undergo specialized training in Social Security rules, strategies, and coordination with Medicare. 

Find an NSSA® professional near you

Frequently Asked Questions

Q: How do I avoid making a Social Security claiming mistake?
A: Educate yourself with trusted resources, understand your options (especially around spousal and survivor benefits), and work with a certified advisor like an NSSA® professional.

Q: When should I claim Social Security benefits?
A: It depends on your goals, health, marital status, and income needs. For many, waiting until age 70 maximizes benefits, but it’s not a one-size-fits-all answer.

Q: Can I work and collect Social Security at the same time?
A: Yes—but if you’re under your Full Retirement Age, the earnings test could temporarily reduce your benefits.