The most exciting yet confusing time for many retiring is claiming social security. The amount you receive is determined by what you earn and the time you elect to start receiving it. However, you can use some social security claiming strategies to maximize your payments at full retirement age (FRA).

Social security claiming strategies are ways or methods you can use to increase the amount you receive. But it's recommended you work with a qualified financial advisor. Doing it alone may confuse you and fail to use the right strategy leaving a lot of money on the table or incurring other costs.

Importance of Social Security Claiming Strategies

In most cases, you will have to wait for many years before you qualify for social security benefits. This is usually based on your earnings record or your spouse's. You may feel the need to claim as soon as possible, but it lowers the amount you get.

While you need to be strategic when claiming to maximize your benefits, remember different states have varying laws that affect the process. Get familiar with the requirements of your state's laws to understand the process and avoid unnecessary costs.

Also, you can search or check the available social security claiming resources to understand when and how to maximize your benefits.


When to Claim Social Security
In most states, you can start claiming your social security benefits at 62. But, the full benefits are received when you reach your FRA. In addition, if you wait longer before claiming, you will increase your monthly benefits. Still, to understand how this works, such as the FRA, you need to consult financial experts, like Axios Capital.

When social security began, the FRA was 65, but for anyone born in 1960 and after, authorities raised it to 67. Also, to claim your benefits, you need to consider these factors,

  • Your year of birth
  • Amount earned over the years
  • The age when you start claiming

On the other hand, claiming spousal benefits can be complicated sometimes, especially if you are divorced since it depends on your ex-spouse's earnings record. But you can apply some social security claiming strategies for married couples.

How many Social Security Claiming Strategies are there?
Several strategies will help you make the most of your benefits. These also include social security strategies for married couples. To avoid using the wrong claiming strategy, financial advisors from Axios Capital will guide you. But here are some top strategies.

  • Earn more or increase your income

Social security payments are usually calculated based on your average 35-years highest-earning record. Since you may not have such a record, try boosting your income. Negotiate for raises or have more than one job.

As you earn more and contribute to your social security, you will reach the taxable maximum increasing your retirement benefits. If your earnings are above the taxable maximum, they are not taxed. This also works in social security claiming strategies for married couples.

  • Work for at least 35 years or more

Since your benefits are calculated using your average 35-year earnings, consider working beyond this period. Every additional year you work, even after retirement, increases your benefits.

  • Avoid claiming your benefits before your FRA

Your monthly benefits reduce if you claim your social security before the full retirement age. If you sign up for social security at 62, you will receive 25% lower monthly benefits if your FRA is 66 years. For people whose FRA is 67, there will be a 30% reduction in their social security benefits. Avoid claiming before your FRA.

  • Work in retirement

You can continue working even beyond retirement and still claim your benefits. But there are a few restrictions. The social security administration (SSA) may impose some deductions, especially if you are under the FRA. Talk to our financial advisors to understand how you can avoid decreasing your retirement income with this strategy.

  • Consider suspending your social security payments

If you are a beneficiary between full retirement age and 70 years, consider suspending your payments to earn delayed retirement credits.

  • Apply the spousal benefits strategy

This strategy is only applicable where you are eligible for payments from your spouse or ex-spouse's benefits. File for spousal benefits at FRA and leave yours to keep growing until 70. However, your spouse must qualify for retirement payments for this to work.

When Should You Claim Your Social Security?
In the United States, you can claim your social security benefits as early as 62. But, our reputable financial experts at Axios Capital advise delaying taking the payments up to about 70 years to maximize your package.

What is the best Social Security strategy for married couples?
While there is no specific strategy, there are a few social security claiming strategies for married couples. Here are the top three to consider.

  • Married couples can delay their benefits to increase their monthly payments
  • The lower earner can claim social security early as the higher earner's benefits continue growing
  • Use the split strategy. This approach reduces the amount drawn from other assets since you and your spouse can now claim benefits at different ages.

How can you maximize your Social Security benefits?
There are several ways you can maximize your social security benefits. These may include the use of available social security claiming resources and strategies. Here are common ways to maximize your benefits.

  • Talk to our experts and understand how the government calculates social security. It will help you know how to boost your payments.
  • Claim at the right time. While you can claim at 62, you will only receive about 75%. Instead, wait until you are 70 or at least your FRA.
  • Be tactical or workaround with spousal benefits. Start by determining which spouse will earn a higher payment.
  • Increase or boost your income
  • Manage or lower your tax liability

Working with Axios Capital's Professionals

Social security claiming strategies can be complex, and taking the wrong approach can cost you big. This is why you need to work with or consult our financial advisors to guide you. They have expertise in social security matters and other wealth management schemes.

Please don't navigate the process alone. Axios Capital will help you review the available options and advise you accordingly. With years of experience on such matters, you will get the help you need in determining the right social security claiming strategies to apply.

Call us today and find out more from our qualified financial planners.

For more information about our firm and the services we offer, send us a quick email or call the office. We would welcome the opportunity to speak with you. | (435) 868-3160