Make Informed Decisions & Avoid Costly Mistakes!
A University of Michigan study found that 22% of retirees regretted it when they claimed benefits, and 21.4% underestimated their expected Social Security income (Source: University of Michigan Health and Retirement Study).
Making the right Social Security choices can add or subtract thousands from your lifetime retirement income. Before you retire, make sure you know the answers to these critical questions:
1. How Do I Sign Up for Social Security?
You can apply:
- Online at SSA.gov
- By phone at 1-800-772-1213
- In person at a local Social Security office
Documents You will Need:
- Social Security number
- Birth certificate
- Work history
- Tax returns (if self-employed)
2. When Do Full Benefits Start?
Your Full Retirement Age (FRA) depends on when you were born:
- Born 1955 → FRA 66 years, 2 months.
- Born 1960 or later → FRA 67
Early Retirement (62+): Benefits are permanently reduced up to 30% less than at FRA
Delayed Benefits (up to 70): You gain 8% per year in additional benefits.
Example: If John’s FRA benefit is $2,500/month, taking it at 62 would cut it to $1,750/month—a
loss of $750 per month for life.
3. What Are Social Security Credits?
- You need 40 credits (typically 10 years of work) to qualify for benefits.
- In 2024, you earn 1 credit per $1,730 in wages, up to 4 credits per year.
- Your benefit is based on your highest 35 earning years—not the number of credits.
4. How Can I Increase My Benefit?
- Work at least 35 years—fewer years mean $0 is factored in.
- Delay benefits to age 70 for the maximum payout.
- Avoid large gaps in earnings history.
Example: If Lisa claims at 67, her benefit is $3,000/month. Waiting until 70
increases it to $3,720/month—an extra $8,640 per year for life.
5. Will My Benefits Be Taxed?
Yes, depending on your combined income (AGI + non-taxable interest + ½ Social
Security). AGI = Adjusted Gross Income.
Filing Status 50% of Benefits Taxed If 85% of Benefits Taxed If
Single $25,000 – $34,000 | Above $34,000
Married (Joint) $32,000 – $44,000 | Above $44,000
Tip: Proper tax planning with IRAs, 401(k)s, and Roth accounts can reduce tax
burdens. Let’s schedule a one-on-one meeting to review further.
6. What Is the Maximum Benefit in 2025?
- At 62 → $2,831/month
- At 67 (FRA) → $4,018/month
- At 70 → $5,108/month
7. Can I Work While Collecting Social Security?
Yes, but earnings limits apply:
- Under FRA (2025 limit: $22,320) → Lose $1 for every $2 earned over the limit.
- Year of FRA (2025 limit: $59,520) → Lose $1 for every $3 earned before FRA.
- After FRA → No earnings limit!
Example: Mark (age 63) earns $30,000 while collecting Social Security. He exceeds
the $22,320 limit by $7,680, so $3,840 is withheld from his benefits.
8. Does Social Security Pay After a Spouse Dies?
- A one-time $255 payment (if eligible).
- Survivor benefits if age 60+, or 50+ if disabled.
- 100% of the deceased’s benefit if it’s higher than your own.
Example: Emma’s husband received $2,800/month. After his passing, she switches
from her $1,900 benefit to his $2,800 survivor benefit.
9. How Does Social Security Know Someone Died?
- Funeral homes typically report deaths to the Social Security Administration.
- Family members should call 1-800-772-1213 to notify SSA immediately.
10. Is SSI the Same as Social Security?
No!
- Social Security is based on work history and earnings.
- Supplemental Security Income (SSI) is a needs-based program for low-income
individuals.
Bottom Line: Plan Wisely to Maximize Your Benefits
Social Security is only one piece of your retirement puzzle. Make informed choices to:
- Claim at the right time
- Optimize earnings history
- Reduce tax burdens!
Need Help Making the Best Retirement Decision?
Schedule a FREE consultation with a Certified Financial Fiduciary® today!
Visit www.Blueprintfg.com or call Jana (239-777-4247) to book an appointment!
Bonus: Get Your Personalized Social Security Estimate!
- Log in to SSA.gov
- Download your Social Security Statement
- Bring it to your consultation for a personalized review!
Find out what others have learned and now benefit from. This is an important part of
your retirement income plan.