Maximizing Social Security Benefits

The right time to claim Social Security depends on more than the size of the first check. Cash needs, health, longevity, work and a spouse's benefits can all affect the decision.

The Social Security Administration explains that there is no single best claiming age. A useful starting point is to connect your own benefit estimates with your retirement spending and portfolio withdrawals.

Understanding Social Security Benefits

Social Security is a federal program that provides income for retired workers, people with disabilities, and eligible family members.

To qualify, you need to have earned enough credits through your work history. Your work history and the age at which you claim both directly affect the amount you receive.

Key Social Security Numbers for 2026

A few figures frame every claiming decision this year:

• Full retirement age: 67 for anyone born in 1960 or later. Claiming at 62 permanently reduces your benefit by up to 30%; waiting past full retirement age adds 8% per year until age 70.
• Maximum monthly benefit: $5,181 if you claim at 70 in 2026, versus $4,152 at full retirement age and $2,969 at 62. These published maximums describe different claiming-age examples, not three estimates for the same person; use your own earnings record to compare dates.
• Cost-of-living adjustment: 2.8% for 2026.
• Earnings test: before the year you reach full retirement age, $1 is withheld for every $2 earned above $24,480 in 2026. In the year you reach full retirement age, $1 is withheld for every $3 above $65,160, counting only earnings before the month you reach that age. SSA then recalculates your monthly benefit at full retirement age to account for months when benefits were withheld; this is not an automatic lump-sum refund.
• Taxable maximum: $184,500 of wages is subject to Social Security tax and counts toward your benefit calculation.

The SSA's 2026 fact sheet provides the annual limits, and its maximum-benefit examples explain the published maximums. For a personal comparison, review your my Social Security estimates.

Questions to Ask Before You Claim

Claiming solely because benefits are available can overlook important trade-offs. Waiting may increase the monthly benefit, but also means funding the intervening years from other resources.

Consider the decision at the household level:

• What income do you need before and after claiming?
• How do your health, family longevity and work plans affect the choices?
• How could the timing affect a spouse or an eligible survivor?
• Which accounts would fund any gap, and what are the tax implications?

Connect Benefits With Your Retirement Plan

Todd can help you consider your claiming options alongside spending, other income, portfolio withdrawals and the needs of your household.

Our retirement-planning overview explains that broader approach. Schedule a free, no-obligation introductory meeting with Todd to discuss the decisions ahead and whether working together could fit.