[Blog] What to Know Before You File for Social Security_1200x800 | The Retirement Planning Group

Filing for Social Security is one of the most important retirement decisions you’ll make. And while the process might seem straightforward, the reality is that when and how you file can significantly impact your retirement income. 

Whether you’re nearing retirement or just starting to plan ahead, understanding the key factors that affect your Social Security benefits can help you make smarter, more confident decisions. Let’s break down what you need to know before you file. 

What are Social Security Benefits?

Social Security benefits are monthly payments from the federal government designed to replace a portion of your income in retirement. They’re based on your work history and the amount you’ve paid into the system over the years through payroll taxes.

The benefit amount you receive depends on:

    • Your earnings history
    • The age at which you begin collecting
    • Whether you’re eligible for spousal or survivor benefits

If you’re looking for a deeper dive, our guide on navigating Social Security retirement benefits offers a helpful overview.

When Should You File for Social Security?

You can start claiming Social Security as early as age 62, but that doesn’t mean it’s the right choice for everyone. Here’s how timing affects your monthly benefit:

Filing Age Monthly Benefit Impact
Age 62 Reduced by up to 30%
Full Retirement Age (FRA) 100% of your benefit (varies by birth year)
Age 70 Increased by up to 32% due to delayed retirement credits

Deciding when to file often makes more sense when viewed through the lens of your broader retirement planning strategy

Do You Qualify for Other Types of Social Security Benefits?

Beyond your work record, you may be eligible for additional types of benefits, especially if you’re married, divorced, or widowed:

Understanding the eligibility rules, especially around spousal, survivor, or divorced spouse benefits, can be easier with support from a CERTIFIED FINANCIAL PLANNER™.

Will Your Benefits Be Taxed?

Yes, Social Security benefits may be taxable depending on your total income in retirement. 

If your combined income (Social Security + other sources) exceeds certain thresholds, up to 85% of your benefit may be subject to federal tax. Your tax liability on Social Security benefits depends on your income mix in retirement, something retirees often revisit when reviewing their annual return

Can You Work and Collect Social Security?

Yes, but it can affect your benefits if you haven’t reached full retirement age.

If you start benefits early and continue working, part of your benefit may be withheld if you exceed the annual earnings limit. Once you reach full retirement age, you can earn as much as you want with no reduction in benefits.

For those continuing to work while claiming benefits, reviewing your tax return with both income and timing in mind can help avoid surprises.

How Does Social Security Fit Into Your Bigger Plan?

Social security is just one piece of your retirement income puzzle. Maximizing your benefits all starts with seeing the full picture; your savings, investments, tax strategy, and lifestyle goals all play a role.

For many retirees, Social Security becomes more powerful when integrated into a broader financial plan that also considers key planning principles like risk, timing, and legacy goals.

Get Help Before You File

Filing for Social Security isn’t something you need to figure out alone. Whether you’re asking, “Am I eligible?” or “How can I get the most from my benefits?”, having a team that understands retirement income planning can help you feel more confident in your next step.

We’re here to help you make the most of your Social Security and every other part of your financial life.