Long Island Elder Law & Estate Planning

Tips Social Security

Like many Americans heading into their retirement years, you may be planning to rely on your Social Security retirement benefits to finance your “Golden Years.” If so, you undoubtedly want to get the most out of those benefits. Maximizing your Social Security retirement benefits requires you to think ahead and plan strategically. With that in mind, the Long Island attorneys at Eghrari Law Firm offer seven tips to help ensure you receive the maximum benefits from Social Security when you retire.

  1. Delay Claiming Your Benefits. The age at which you decide to claim your Social Security benefits can significantly impact the amount you receive each month. Although you can start receiving benefits as early as age 62, the longer you wait, the more your benefits increase. For each year you delay beyond your full retirement age (FRA), up to age 70, your benefits increase by about 8 percent. For example, if your FRA is 66 and you wait until 70 to claim benefits, you will receive a 32 percent higher monthly payment for the rest of your life.
  2. Work for at Least 35 Years. Social Security calculates your benefits based on your highest-earning 35 years of work. If you do not have 35 years of earnings, zeros will be averaged in for those missing years, which reduces the overall benefit amount. Working for at least 35 years ensures that your earnings history is fully accounted for, and it can help maximize your benefits. If your current earnings are higher than past years, continuing to work beyond 35 years can further boost your benefit by replacing lower-earning years with higher ones.
  3. Maximize Your Earnings During Your Working Years. Since Social Security benefits are based on your lifetime earnings, increasing your income during your working years directly impacts the amount you receive in retirement. The Social Security Administration calculates benefits using your average indexed monthly earnings (AIME), which reflects your highest 35 years of inflation-adjusted income.
  4. Coordinate Spousal Benefits. Married couples have several options for maximizing their Social Security benefits by coordinating when and how they claim. If one spouse earns significantly more than the other, the lower-earning spouse may want to claim spousal benefits. Spousal benefits allow a spouse to receive up to 50 percent of the higher earner’s benefit if claimed at full retirement age. Additionally, delaying the higher earner’s benefits while the lower earner claims their own can help increase overall household benefits.
  5. Consider Survivor Benefits. Survivor benefits can help maximize Social Security income for couples, particularly when one spouse expects to live significantly longer than the other. If the higher-earning spouse delays claiming benefits until age 70, the surviving spouse will receive the increased benefit amount for the rest of their life upon the death of the higher earner. Planning with survivor benefits in mind can provide the surviving spouse with higher financial security in retirement.
  6. Avoid Earning Too Much While Receiving Benefits. If you choose to claim benefits before your full retirement age and continue to work, you need to be aware of the earnings limit. The 2024 earnings limit for people under full retirement age all year is $22,320. The SSA will deduct $1 from your benefits in 2024 for each $2 you earn over $22,320. The 2024 earnings limit for people reaching full retirement age is $59,520.
  7. Take Advantage of Tax Strategies. Social Security benefits can be taxed, depending on your total income in retirement. If your income, including half of your Social Security benefits, exceeds certain thresholds, up to 85 percent of your benefits may be subject to federal income taxes. Consulting with a financial advisor about tax-efficient withdrawal strategies from your retirement accounts can be beneficial in maximizing your overall income.

Can We Help You Incorporate Social Security Tips into Your Estate Plan?

For more information, please join us for a FREE estate planning seminar. If you need help incorporating any of these Social Security tips into your estate plan, contact the Long Island estate planning attorneys at Eghrari Law Firm by calling us at 631-265-0599 to schedule your appointment.

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About Eghrari Law Firm

Mark S. Eghrari is an attorney in private practice in Smithtown, New York. He has been in practice since 1988. Mark S. Eghrari provides extensive estate and tax planning services to individuals and businesses. Mr. Eghrari’s primary focus is helping clients avoid probate, minimize or eliminate Federal and State Estate taxes and protect their assets from the high cost of nursing care, if they become ill Read More!