When you think about retirement income, Social Security is often one of the first things that comes to mind. For many retirees, it’s a cornerstone of financial security. But here’s the truth: most people don’t maximize their Social Security benefits. They claim too early, overlook important considerations, or assume their benefits will be the same no matter what.
The result? They lose out on long-term income potential by making rushed decisions.
For child-free retirees, Social Security planning is even more critical. Without children you need to make every decision count toward your lifetime income and security.
In this article, we’ll explore why timing matters, the common pitfalls to avoid, and how to think about Social Security in the context of your overall retirement plan.
And if you’d like to go deeper, join me for my webinar Retirement Planning for Near-Retirees Without Children, where we’ll look at how Social Security fits into your broader planning picture. [Click here to register].
Why Timing Matters More Than You Think
You can start collecting Social Security as early as age 62, but the longer you wait—up to age 70—the higher your monthly benefit will be. That difference can be significant. For some, waiting even a few years can mean hundreds of dollars more per month, which adds up to thousands over a lifetime.
The key is understanding your unique circumstances. Do you have enough income from other sources to delay? Are you in good health with a strong life expectancy? These are important questions to ask as you consider when to claim.
In the webinar, I won’t recommend one-size-fits-all strategies—because Social Security truly is different for everyone. Instead, I’ll share how to think about Social Security alongside your other income sources so you can make the best decision for your situation. [Click here to reserve your spot].
The Couple’s Perspective—Even if You’re Single
If you’re married, your Social Security claiming choice doesn’t just affect you—it affects your spouse as well. Decisions about when to claim can impact spousal and survivor benefits.
But here’s the twist: even if you’re single and child-free, Social Security is still just one piece of the puzzle. The most important step is making sure your benefits are coordinated with your overall retirement plan including your savings, investments, tax picture, and lifestyle goals.
Understanding the Tax Trap
Another little-known fact is that Social Security benefits can be taxable. Depending on your income level, up to 85% of your benefits may be subject to federal taxes. If you’re also drawing from retirement accounts or other income streams, the tax impact can be larger than expected.
This is why Social Security decisions shouldn’t be made in isolation. They need to be considered as part of your broader financial strategy.
Coordinating With Core Living Expenses
One of the best ways to think about Social Security is as the foundation for covering your core living expenses—the essentials you’ll always need, like housing, food, utilities, and insurance.
By aligning your benefits with these expenses, you can create a level of stability and security in your retirement budget. Other income sources, such as investments or part-time work, can then be directed toward lifestyle wants and legacy goals.
Avoiding Common Mistakes
Too many retirees make Social Security decisions without a plan. Common pitfalls include:
- Claiming as early as possible without understanding the long-term tradeoffs.
- Assuming benefits will stay the same no matter when you claim.
- Overlooking how Social Security interacts with taxes and other income streams.
- Not reviewing the decision as life circumstances change.
These mistakes can cost thousands over the course of retirement. With thoughtful planning, you can avoid them and get more value from your benefits.
Taking Control of Your Benefits
Social Security isn’t a one-size-fits-all program. The choices you make can dramatically affect your retirement. While the “best age” or “best strategy” depends on your personal situation, the most important step is making sure Social Security is coordinated with the rest of your retirement plan.
That’s why I created the webinar Retirement Planning for Near-Retirees Without Children. We’ll discuss how to:
- Think about Social Security in the context of your overall plan.
- Avoid common mistakes that reduce your lifetime benefits.
- Make sure your essential expenses are covered, so you can retire with confidence.
Register today to learn how Social Security fits into your bigger picture. [Click here to register].
Final Thoughts
Social Security is more than just a monthly check—it’s a lifetime asset. By approaching it thoughtfully, you can create more stability and confidence in retirement.
For child-free retirees, the decisions are even more personal. With no dependents to consider, the focus is on creating the most secure and fulfilling retirement possible.
Join me in the webinar to learn how to think about Social Security as part of a retirement that truly supports your goals. [Click here to register].
Frequently Asked Questions
What is the best age to start Social Security?
It depends on your health, life expectancy, and other sources of income. While many people claim early at 62, waiting until full retirement age or later can often increase lifetime benefits.
Are Social Security benefits taxable after retirement?
Yes. Depending on your income level, up to 85% of your Social Security benefits may be taxable.
How do child-free retirees plan around Social Security?
By making Social Security part of a broader retirement plan that includes savings, investments, healthcare, and lifestyle goals.
Investment advisory services are offered through Keating Financial Advisory Services (KFAS), a registered investment advisor. Advisory services are provided pursuant to a written agreement and the firm’s Form ADV Part 2A. This content is for informational purposes only and does not constitute personalized financial advice. KFAS does not provide tax or legal advice. Clients are encouraged to consult with their personal tax advisor, attorney, or other qualified professional regarding their specific situation. Any discussion of tax treatment is for informational purposes only and may not reflect the most current tax rules or interpretations.
