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Choose a Happy Retirement

Thu, 18 Jun 2026 08:12:38 GMT

Many assume that a happy retirement comes down to building enough wealth over a lifetime of work that will ensure comfort in their later years.

In simple terms, will the financial assets accumulated generate the monthly income necessary to sustain their retirement lifestyle? If they can check that box, well, they are golden…or so they believe.

As they approach retirement, they tally up sources of income that will be generated from Social Security, a pension, assets held in or outside of retirement accounts, the sale of a business or properties, or any other assets that can be used to generate cash.

Money matters. We intuitively understand that. Having your finances in order removes a significant burden, easing stress and giving you greater freedom to live life on your terms.

But having ample financial resources in retirement isn’t a guarantee you’ll be content. Just ask anyone who is retired. It’s a big part of the equation, but it’s not the only variable.

In April, we discussed Social Security. Last month, we briefly explored the idea that retirement is a modern concept and outlined various retirement vehicles available to help you save.

This month, we will explore practical strategies that may enhance your overall satisfaction in retirement.

And the survey says…

The good news is that retirees are enjoying life amid health and even financial uncertainties, according to a recent study published by the Transamerica Center for Retirement Studies.

According to the study, almost half said their enjoyment of life improved, while a little over one-third said it stayed the same.

More than 80% reported their overall happiness either improved (41%) or didn’t change (43%).

And, when it came to finances, just over two-thirds said their financial situation improved (24%) or at least stayed the same (46%).

The survey highlighted that retirees embrace happiness, prioritize what’s important to them, spend their time in meaningful ways, and safeguard their health.

In other words, the data are encouraging, but achieving a fulfilling retirement requires intentional effort.

But let’s back up for a moment. Those who have not yet left the workforce risk falling into the retirement myth that retirement will lead to endless free time, constant travel, the never-ending pursuit of hobbies, and retirement bliss.

If you are not intentional, you risk falling into the “endless free time” bucket where there is too much unstructured free time that can lead to what might be called a “retirement void,” i.e., a sense of emptiness or lack of purpose some people feel after leaving their career or business behind.

This, in turn, can contribute to declines in both mental and physical health and a significant psychological burden.

Planning is key. Happiness and fulfillment in retirement are a choice.

7 successful habits of those who enjoy their retirement years

1. Retire to something, not from something. When someone leaves a job solely to escape their dislike of it, they often trade one set of problems for another. However, those who succeed carefully plan their next steps and exit one opportunity to pursue another.

What new opportunities await you in retirement? What would you like to do that you simply do not have the bandwidth while working?

2. Happiness equates to a sense of purpose. Ditch the cliché of golfing daily or leisurely reading on the beach or in a mountain cabin. While the beauty of ocean sunsets and mountain valleys is undeniable, the notion of quietly drifting into retirement belongs to another era.

Today’s active, fulfilled seniors are redefining what it means to live fully, with purpose, energy, and engagement.

Work often gives us identity and meaning. So, find a new source. Consider volunteering, teaching, mentoring, and creative pursuits. You know, something you’ve always wanted to do, something that’s been in the back of your mind, but you simply didn’t have the time to fully pursue it.

Unsure of your next step, local food banks, shelters, parks and outdoor projects, libraries, animal shelters, and rescue groups are often in need of assistance.

Whether it’s preparing meals, organizing donations, or greeting visitors, these roles offer immediate, visible impact as well as a strong sense of purpose. Faith-based organizations often have a wide range of volunteer roles. These can offer both purpose and a built-in social network.

3. Maintain social connections. Many folks underestimate how much of their social life came from work. Make deliberate plans with friends, join groups that align with your interests, enroll in classes, and stay involved in your community.

4. Maintain a routine, but it’s OK to keep it flexible. Regular exercise, social activities, creative pursuits, and personal projects are fulfilling. Downtime is great, but too much unstructured time can lead to that retirement void.

You are retired. Assert control over your calendar. Schedules needn’t be rigid, but structure defines the day and week.

5. Learning doesn’t stop at retirement. Do you want to learn a musical instrument, a new skill, or take a class? Many local universities offer free online courses on a variety of topics. What area of interest would you like to explore?

Consider Massive Open Online Courses (MOOCs), which are free, open-access, self-paced digital classes designed for a global audience. These courses typically include pre-recorded video lectures, curated readings, and interactive quizzes to support learning and engagement.

Some class ideas from AARP include history, current events, literature, arts and music, science and technology, religion and spirituality, and health and wellness. What piques your interest?

Progress keeps you on the track toward fulfillment.

6. Can you ease into retirement? Working 40 hours a week or more and then suddenly not having to work at all on Monday, Tuesday, Wednesday, etc., can be a jarring transition for someone who didn’t realize how much they relied on structure.

Can you drop to part-time work with your employer, transition to consulting, or take on seasonal work that can ease you into full-time retirement?

7. Align your time with our values. What matters to me? What are my priorities? How would I like to channel my energy? It’s not simply about staying busy. It’s also about investing your time in the right things.

Check in with yourself regularly, maybe once a month. What’s working? What’s not? And what changes might you make going forward?

A lot of folks who transition into retirement are excited for a slower, more relaxed pace of life, and that makes sense. Interestingly, many retirees experience a boost in happiness right after they stop working.

But for some, that initial high fades, and satisfaction begins to slip. A life centered mostly on leisure may not offer the same sense of purpose or accomplishment that a career once provided.

If you feel like you are starting down that path, you’re not alone, and there are proactive steps you can take to address it.

Social Security Snafus—and How to Fix Them

Thu, 18 Jun 2026 08:08:27 GMT

The Social Security Administration has a strong operating record. But mistakes do happen—and they can cost your clients. Here are some of the most common Social Security miscues, and how you can correct them.

First let it be said that for the number of people served (73 million) and the amount of money paid out annually ($1.5 trillion), the Social Security Administration does an admirable job of keeping everything straight. More than 99% of beneficiaries receive their benefits on time and in the correct amount and never need to contact SSA for any reason other than to report changes in marital status, home address, bank account, or other pertinent details.

But the Social Security Administration’s error rate is not zero, and if you’re one of the ones who gets caught in an administrative snafu, it doesn’t matter that almost everyone else is getting their checks on time.

Here are some common Social Security snafus and how to fix them.

Earnings Record Errors

Earnings are reported to the Social Security Administration (SSA) via W-2 and are usually accurate. But errors can occur, usually due to mistakes in the Social Security number or the earnings amount.

Errors are more common among self-employed individuals, who report their earnings via their tax return. If an extension was filed or a tax return was amended, the information may not make its way over to SSA from the IRS causing earnings not to be reported at all.

Clients should regularly check their earnings records and verify against W-2s or paystubs or tax returns. If an error is discovered they can correct it by calling SSA at (800) 772-1213 or by completing Form SSA-7008 and mailing or delivering it to a local office. Allow up to 120 days for the correction to be completed and follow up in writing.

The Social Security Administration has additional details on correcting earnings records.

Overpayments

Overpayments arise when a person receives benefits they were not entitled to. The fault may lie with SSA, but more often it’s because the beneficiary failed to report employment or marital changes.

When an overpayment is discovered by the SSA, the beneficiary receives a notice demanding repayment. Even if the overpayment is SSA’s fault, the funds must be paid back, either in a lump sum or through the withholding of future benefits.

If the client believes the overpayment did not occur or the amount is incorrect, they can dispute it by submitting Form SSA-561-U2 (Request for Reconsideration).

Or, if they were not at fault and the repayment would cause financial hardship, they can submit a waiver via Form SSA-632-BK.

If they do not dispute the overpayment but can’t afford to repay it, they can request a reduced rate by filing Form SSA-634 (Request for Change in Overpayment Recovery Rate).

Filing an appeal or waiver stops collection until SSA issues its decision. If the appeal is denied, the client may request a hearing before an Administrative Law Judge within 60 days.

Underpayments and widow’s benefit miscalculations

Some widows receive lower benefits because they were not informed of their right to switch from their survivor benefit to their own retirement benefit or vice versa. In other cases, the survivor benefit was miscalculated by SSA.

When a spouse dies before age 62, SSA is supposed to calculate a “WINDEX PIA” which substitutes a later year (usually the year the survivor turns 60) for indexing purposes. This WINDEX PIA will be used if it results in a higher amount.

Widows who question the amount of their survivor benefit can call SSA at (800) 772-1213 and request a full review of their survivor benefit calculation.

Specifically, they can ask if a WINDEX PIA was applied to their benefit calculation.

If they were underpaid, SSA must issue a retroactive lump sum payment and/or increase future benefits.

Being listed as deceased

When SSA lists a person as deceased, benefits stop immediately. Direct deposits are halted, Medicare is suspended, and bank accounts may even be frozen.

If the death listing is erroneous and the person is still alive, the resolution process can be “prolonged and arduous,” according to SSA’s own March 2025 statement.

Needless to say, the fix is to convince SSA you are still alive.

Call SSA immediately (800) 772-1213 and state that you are a living beneficiary whose benefits have been suspended.
Visit your local Social Security field office in person with a government-issued photo ID (passport, driver’s license).
Bring: birth certificate, SSN card, any other government-issued document confirming identity.
Request that SSA correct the “Numident” record and reactivate your benefits.
Ask SSA to issue all retroactive payments for the months benefits were wrongly withheld.
If not resolved within 10 business days, contact your U.S. congressional representative’s office for constituent services assistance. This frequently accelerates resolution.
File a complaint with the SSA Office of the Inspector General at oig.ssa.gov if the response remains inadequate.

Marriage and remarriage benefit miscalculations

SSA does not know about a marriage or remarriage until the individual self-reports it. Failure to report a marriage or remarriage can result in either overpayments or underpayments depending on the situation.

For example, if an individual receiving divorced-spouse benefits remarries, the divorced-spouse benefit must stop. If the remarriage isn’t reported and the divorced-spouse benefits continue, they will be considered an overpayment (which may be partially offset by entitlement to spousal benefits off the new spouse).

Remarriage after age 60 does not halt the payment of survivor benefits (or divorced-spouse survivor benefits), but benefits could be erroneously stopped by SSA when the remarriage is reported.

To fix or prevent, report all marital events and check on benefits going forward.

Report a marriage or divorce within 10 days of the event.
At remarriage, ask SSA specifically about the impact on all active benefit streams.
For survivor beneficiaries remarrying at 60+, confirm survivor benefits continue.
Request written confirmation of any benefit changes in your file.

If an overpayment results from SSA’s failure to update records after you reported: file SSA-561-U2 (dispute) or SSA-632-BK (waiver—you were not at fault).

Wrongful benefit suspensions or terminations

A common reason for benefit suspensions is the earnings test.

Clients under full retirement age (FRA) who are still working will file for benefits, maybe knowing there will be some withholding for the earnings test but not understanding what a huge administrative hassle it will be and the near impossibility of verifying the accuracy of the withheld amount (and, later, the recalculation of their benefit at FRA).

Nevertheless, some clients are determined to start their benefit early, and all you can do is prepare them for frequent back-and-forth communications with SSA and the importance of accurately estimating their earnings.

Part of the problem with the earnings test is the lag time between the client’s estimate and the actual reporting of the earnings. SSA withholds benefits right

away based on the client’s estimate, and later, after earnings are reported, makes the necessary adjustments due to the (almost certain) discrepancy between estimated and actual earnings.

At the same time, it is making this adjustment it is also withholding benefits based on estimated future earnings, which, in turn, will need to be adjusted after those earnings are reported. It can be a mess.

Not All Retirement Accounts Are the Same: What Everyone Should Know

Thu, 18 Jun 2026 08:01:41 GMT

Retirement as a formal idea and lifestyle is a relatively modern concept. For most of human history, people worked until they were physically unable and then relied on family or community support.

It wasn’t until the industrial age that the concept of retirement was born.

In 1875, the American Express Company established the first private pension plan in the United States. About 15 years later, Germany introduced the first national pension system, allowing older workers to exit the workforce and receive financial support.

By 1899, there were 13 private pension plans in the U.S.

In 1935, Social Security was established, and the first payment was made to Ida May Fuller in 1940 for $22.54.

While relatively new, retirement today is firmly established, making it essential to begin planning for life after work decades in advance.

Last month, we discussed Social Security.

Social Security will help supplement retirement income, but additional resources are required to support your needs and lifestyle after work ceases.

This month, we will provide a brief overview of the various vehicles that are now offered via legislation that can help fund your retirement.

Creating our list

Retirement accounts are simple in concept—tax-deferred savings that are available to you in retirement. But the details can be confusing. So, we’ll keep the discussion high-level, focusing on retirement options available outside employer-sponsored plans like 401(k)s and 403(b)s.

Which option may be most beneficial for your situation? Let’s explore various account choices. If you have questions, we’re happy to help you find the right approach. As with any tax-related issues, feel free to check in with your tax advisor.

1.Let’s start with the traditional Individual Retirement Account, or IRA.

As the name indicates, the account is opened by an individual, and it’s independent of an employer. Anyone who has earned income may contribute to an IRA account. If eligible, contributions are tax deductible. Earnings and capital gains in the IRA are tax deferred. Taxes are paid only when funds are withdrawn.

In 2026, the maximum IRA contribution across all IRA accounts is $7,500 if less than 50 years old. If you are 50 or older, you may contribute up to $8,600.

Advantages:

Tax-deductible contributions if eligible
Tax-deferred growth
Ability to name beneficiaries (avoids probate)
Flexibility of investment options
Simple to open
Record-keeping by brokerage or bank
Disadvantages:
Taxes paid at withdrawal
Early withdrawal penalties
Complexities regarding deductibility issues that arise from one’s own company retirement plan or a spouse covered at work
Required minimum distributions (RMDs)As the name indicates, the account is opened by an individual, and it’s independent of an employer. Anyone who has earned income may contribute to an IRA account. If eligible, contributions are tax deductible. Earnings and capital gains in the IRA are tax deferred. Taxes are paid only when funds are withdrawn.

In 2026, the maximum IRA contribution across all IRA accounts is $7,500 if less than 50 years old. If you are 50 or older, you may contribute up to $8,600.

Advantages:

Tax-deductible contributions if eligible
Tax-deferred growth
Ability to name beneficiaries (avoids probate)
Flexibility of investment options
Simple to open
Record-keeping by brokerage or bank
Disadvantages:
Taxes paid at withdrawal
Early withdrawal penalties
Complexities regarding deductibility issues that arise from one’s own company retirement plan or a spouse covered at work
Required minimum distributions (RMDs)

2. A Roth IRA is similar.

2.If you are eligible to open and contribute to one, contributions are made with after-tax dollars, and qualified withdrawals are not subject to federal income taxes.

A Roth has similar advantages and disadvantages to a traditional IRA. Though there are some differences. A Roth enables you to make tax-free withdrawals in retirement, and RMDs are not required. But contributions are made with after-tax dollars.

3.Business owners have the option of setting up a Simplified Employee Pension Individual Retirement Account, or what is commonly called a SEP IRA.

A SEP IRA is an employer-funded retirement plan that allows a business owner to make contributions to IRAs set up for themselves and their employees.

Self-employed individuals, independent contractors, and small and large businesses can take advantage of SEP IRAs.

Unlike an IRA, the business owner makes the tax-deductible contribution into his or her own account as well as employees’ accounts. Employees receive the same percentage of their pay as the owner. In other words, if the owner

contributes 15% of compensation, employees receive 15% in their respective plans.

In some respects, the SEP IRA is like a pension for the employees, as employees don’t contribute to the account. However, unlike a pension, it is a defined contribution plan, as it has a specific account balance, similar to a 401(k).

Additionally, it can operate like a profit-sharing plan, giving the employer flexibility to boost contribution rates (reward employees) during more profitable years.

For 2026, the maximum amount of compensation considered when calculating contributions is $360,000. For self-employed owners, net earnings must be reduced by both the retirement contribution itself and the self-employment tax, resulting in an effective contribution rate of about 20% of net earnings.

The SEP IRA contribution limit for 2026 is 25% of an employee’s total compensation, up to $72,000.

Advantages:

Potentially high contribution limits vs. an IRA
Tax-deductible contributions
Wide investment options
Easy setup
Easy to administer
Flexible contribution amounts year-to-year
Employee retention and recruitment benefit tool
Immediate vesting
Beneficiary option
Disadvantages:
Withdrawals taxed
Added employer expense
No Roth option
No employee contribution option
RMDs required

The solo (individual) 401(k)

4. for business owners is a powerful tool that can be used to defer taxes and save for retirement as long as you are a small business owner with no employees (except your spouse).

In 2026, the maximum you can contribute is $24,500 as the employee plus an additional 25% of compensation as the employer, with additional catch-up contributions if you are 50 or older.

The $24,500 ceiling is a flat dollar limit. This feature is what makes the solo 401(k) such a powerful savings vehicle. For example, someone with $40,000 in earned income could contribute up to $24,500 to the plan under the employee contribution limit without tapping the employer contribution.

In 2026, aggregate contributions are $72,000 if you’re under 50, with an additional $8,000 in catch-up contributions if you’re between 50 and 59 or 64 or older.

If you are between 60 and 63, you may contribute an additional $11,250 in catch-up contributions.

Advantages:

High limits for lower and moderate incomes
Roth option
Availability of employee and employer contribution options
Year-to-year flexibility on contributions
Option to add beneficiaries
Loan features
No income caps on high wage earners
Disadvantages:
Greater paperwork, recordkeeping, compliance, contribution tracking, and potential need to engage a third-party administrator
RMD requirement for non-Roth. (Secure 2.0 Act exempts RMDs in Roths)
Restrictive loan rules
Generally, not allowed for the owner if the business has employees

At lower income levels, contributions can be substantially higher versus a SEP IRA due to the employee deferral option but be aware that a solo 401(k) doesn’t

share the paperwork simplicity of the SEP IRA. At a much higher income, the SEP IRA may be the easiest option.

5.Finally, let’s review the Health Savings Account, or HSA.

If you have a high-deductible healthcare plan and your plan has an HSA option, you may contribute up to $4,400 as an individual or $8,750 for family coverage. If over 55 or older, you may make an additional $1,000 “catch-up” contribution.

Advantages:

Tax-deductible contributions
Tax-deferred growth
Tax-free withdrawals if used for qualified medical expenses
A wide array of investment options
No use-it-or-lose-it that occurs with FSAs
Penalty-free withdrawals at age 65 for non-medical expenses—just pay the taxes as with an IRA
Option to pay Medicare premiums (excluding Medigap) from your HSA
Disadvantages:
Requires high-deductible healthcare plan
Record-keeping of expenses
Withdrawals outside qualified medical expenses may include taxes and a 20% penalty

If you are healthy and comfortable with a higher deductible, premium savings can be plowed back into an HSA, lowering taxes and providing you with a savings account that can be used for medical expenses.

Moreover, it effectively doubles as a retirement account at 65 years old, as non-qualified withdrawals at 65 are taxed as regular income.

As demonstrated, there isn’t a shortage of options available. Choosing the right approach, however, depends on your goals, employment status, income, and tax considerations.

So, if you have questions, we’re here to walk through your options and help find the best fit for you. As your goals or personal circumstances evolve, we can help guide any necessary mid-course adjustments.

Young Professionals and Fraud

Thu, 18 Jun 2026 07:54:18 GMT

Employment scams, student debt traps, and payment app schemes—and how advisors help clients avoid them.

Executive summary: Adults ages 25–40 are being targeted by fast-growing digital scams—especially fake job offers, student loan forgiveness cons, and payment app fraud. This briefing outlines what’s changing, the red flags to watch for, and the practical verification steps we use with clients to prevent losses before money or personal data leaves their control.

Many of our clients between the ages of 25 and 40 are not thinking about fraud. They’re thinking about paying off loans, advancing careers, and maybe buying a first home. That’s exactly what scammers are counting on.

Why This Matters for Younger Clients

While fraud prevention conversations often focus on retirees, the data tell a different story. According to Deloitte research, Gen Z adults are more than three times as likely to fall victim to online scams as baby boomers. The Federal Trade Commission reports that people aged 20–29 lose money to fraud 44% of the time when targeted, compared to just 24% for those 70–79. They lose smaller amounts per incident, but they’re getting scammed far more frequently.

Advisor moves (at a glance):

Use verification-by-callback for wires, new payees, and changes to instructions—before funds move.
Coach clients on the three biggest scam patterns (employment, student debt relief, payment apps) and the “never pay upfront” rule.
Harden accounts with two-factor authentication and password hygiene to reduce takeover risk.

Common fraud patterns targeting young professionals

Employment scams (the fast-growing category)

Job scams have become one of the fastest-growing fraud categories. The FTC reports that employment scam losses surged from $90 million in 2020 to over $501 million in 2024.

A 2025 survey by Resume.org found that 39% of Americans received a fake job offer via text message. Twenty percent of Gen Z respondents fell for job scams,

compared to just 4% of boomers. Among men, the vulnerability is even higher: 31% of millennial men engaged with job scam texts.

The consequences extend beyond lost money. Of those who engaged with employment scams, 48% shared personal information like Social Security numbers, and 18% quit real jobs or delayed legitimate interviews because they believed the fake offer was real.

These schemes work because they exploit genuine financial pressure. Scammers post convincing job listings on legitimate platforms, conduct “interviews” via text, then ask for money for equipment or training. By the time the victim realizes the job doesn’t exist, the scammer has vanished.

Student loan forgiveness scams

For clients carrying student debt, loan forgiveness scams represent another major threat. The FTC has pursued dozens of enforcement actions against fraudulent debt relief operations, with individual schemes bilking consumers out of $16 million to $23 million each.

These scams follow a pattern: Fraudsters impersonate the Department of Education, promise enrollment in programs that guarantee loan forgiveness, and charge illegal upfront fees. Many operations falsely invoke “Biden Loan Forgiveness” to add credibility. They create urgency by claiming limited-time enrollment windows and exploit confusion around legitimate federal programs.

Payment App Vulnerabilities

The shift to digital payments has created another attack surface. The FTC received 90,571 reports of payment app fraud in 2024, nearly double the number from 2023. An industry survey found that 83% of payment app users reported being scammed or targeted in 2024, up from 68% in 2023.

The problem is structural. When you authorize a payment through Venmo, Zelle, or Cash App, even if you were tricked, banks classify it as “authorized” and typically won’t refund the money. Consumer Reports found that none of the four major payment apps fully reimburse users who are scammed into authorizing payments.

Common schemes include “accidental overpayment” scams, where someone sends money via payment app, claims it was a mistake, and asks for a refund. The original payment later reverses, and it came from a hacked account, but the “refund” was real money from the victim’s account.

What advisors can do (detailed)

We believe that these fraud patterns offer unique opportunities for us to work with you and add value. When reviewing accounts, unusual deposits should trigger questions. When you suddenly receive funds followed by an unexplained withdrawal we verify that the transactions were intentional and that you have not fallen for an overpayment scam.

Education becomes part of the service offering. As you Advisor we explain that legitimate employers never ask employees to pay for equipment upfront, that Federal Student Aid never charges fees, and that payment apps should be treated like handing someone cash—irreversible and unprotected.

For clients buying their first home, reinforcing wire fraud protocols is critical. We advise verify any change in wiring instructions by calling the title company using a number found independently. Some survey data shows advisors who implement callback verification have prevented six-figure losses.

We recommend two-factor authentication on financial accounts. Many young clients use the same password across multiple accounts. If one gets compromised, scammers gain access to everything.

Red flags to watch for

Certain patterns signal elevated fraud risk. Frequent mentions of new “investment opportunities” on social media, particularly involving cryptocurrency, warrant closer attention. Sudden interest in wire transfers to unfamiliar recipients should trigger the callback protocol.

If a client mentions receiving job offers that require upfront payment, that’s an immediate teaching moment. When clients discuss student loan repayment, we ensure they understand that StudentAid.gov is the only official source for federal loan assistance. Any company charging upfront fees for loan forgiveness is breaking the law.

Reframing the conversation with younger clients

The challenge with younger clients is overcoming the assumption that fraud happens to other people. Digital fluency doesn’t prevent fraud; it just changes which scams work.

Because our younger clients are managing student loans, building careers, and navigating major purchases through smartphones there is greater risk of decision fatigue and financial pressure. That creates cognitive overload, which scammers exploit.

When we spot a red flag, we work with you as a partner, not a parent. Our approach will be something like, “Before we process this, let’s verify the recipient’s information together” which has proven to work better than “This looks like a scam.”

Young professionals may not think they need fraud protection, but they need it more than they realize. We understand these lifecycle-specific risks can provide protection that goes far beyond portfolio and investment management; which becomes the pause that stops the scam before it succeeds.

Making Sense of Social Security: The Basics and Key Considerations

Tue, 14 Apr 2026 01:05:05 GMT

"Social Security is one of the most effective poverty-prevention programs in history. According to the U.S. Census Bureau, it keeps nearly 29 million Americans from sliding into poverty each year,” BlackRock CEO Larry Fink wrote in his 2025 letter to investors.

Nonetheless, while it provides a basic level of income, we’re also mindful that Social Security, by itself, is rarely enough to ensure a comfortable retirement.

What is Social Security?

Social Security is a federal program that provides income to eligible people who are:

Retired
Spouses or dependents of eligible workers
Disabled
Survivors of a deceased worker

Our focus will be on Social Security’s primary mission, providing monthly benefits to those in or near retirement. But let’s briefly touch on the other aspects of the nation’s largest safety net that accounts for about one in every five dollars spent by the federal government.

Social Security Disability Insurance (SSDI) , or “Disability,” provides monthly payments to people who have a disability that stops or limits their ability to work.

You may be eligible if you have a disability that affects your ability to work for one year or more, or will result in death, or you are blind.

Generally, you must have worked for at least five of the last 10 years to qualify for SSDI. People under the age of 24 may not need to have worked as long.

Survivor benefits provide monthly payments to eligible family members of those who worked and have paid Social Security taxes before they died.

You may be eligible if you:

Are age 60 or older, or age 50–59 if you have a disability, and Were married for at least nine months before your spouse's death, and Didn’t remarry before age 60 (age 50 if you have a disability).
A child of someone who died may be eligible if they’re unmarried and are 17 and younger, or 18–19 years old and in school full time (K–12), or any age if they developed a disability at age 21 or younger.

Now, let’s turn our attention to the retirement benefits that Social Security provides.

When can I start receiving Social Security retirement benefits?

You can claim retirement benefits as early as age 62, but your benefit will be permanently reduced.

Key ages:

62 is the earliest you are eligible.
Full Retirement Age (FRA) is between 66 and 67 and depends on the year you were born. If you were born in 1960 or later, FRA is 67.
70 provides the maximum benefit (no further increases after this).

Practically speaking, how does this work? Here’s a broad overview.

If you were born in 1960 or later, you’ll receive

70% of your full benefit at age 62
100% of your full benefit at age 67
124% of your full benefit at age 70

Every month you delay between birthdays adds a prorated increase to your benefit. At age 70, you’ll have maximized out at 124%.

For example, based on his earnings history, Tom is entitled to $1,000 per month at age 67. If he claims early at age 62, his benefit would be reduced to $700 per month. By waiting until age 70, his benefit rises to $1,240 per month.

Keep in mind, this does not include cost-of-living adjustments, which are required by law and will gradually increase Tom’s benefit over time.

The breakeven: Claim now or wait

A common question that arises is, “If I claim benefits at age 62 and receive a smaller monthly amount over a longer period, when might I break even versus waiting until age 67?”

In this case, the breakeven is roughly about 79 years old .

The breakeven between claiming Social Security at 67 versus 70 is around 82 years of age, and the breakeven between claiming at 62 and waiting until 70 is around 80.

Claim early?

Simply put, you need income today. You’ve retired (or have been subjected to a layoff), your savings are limited, and Social Security provides you with a stable income.

Health concerns or a shorter life expectancy, based on family history, are also important reasons some choose to claim benefits earlier.

Others simply value income today. They want the freedom and the income while they are still healthy.

But if you are still working, be aware that earnings limits apply before FRA, but withheld benefits are not permanently lost—more in a moment.

Claim later?

The future is unknown, but you enjoy working, you are in good health, your family history suggests a longer life expectancy, and you don’t need the money today.

Besides, you have other sources of income, such as rental properties, a pension, or a part-time gig. But once you reach 70, there’s really no reason to delay. Your benefit is maxed out, and you’ll be leaving money with the government.

Working and receiving Social Security

You may or may not be aware of this, but you can receive Social Security retirement benefits and work at the same time . There are a lot of nuances to this topic, so if you’re considering Social Security while still working, we’d be glad to help you make an informed decision.

Here are the main highlights.

If you are under your FRA for the entire year:

2026 earnings limit is $24,480.
Social Security withholds $1 in benefits for every $2 you earn above the limit.

If you reach FRA during the year:

2026 limit (before your birthday month) is $65,160.

SSA withholds $1 for every $3 you earn above the limit.

Starting the month you reach FRA, there is no earnings limit and no benefits reduction.

What counts as income ? Wages, bonuses, commissions, and vacation pay from a job in the year they’re earned, not paid. For example, bonuses may be earned in one year but paid the following year. In some cases, severance pay is counted.

Income that’s excluded includes capital gains, pension payments, annuity income, 401(k) or IRA withdrawals, rental income (if not a business), Social Security benefits, veterans benefits, and other government benefits.

There’s one other matter we’d like to point out. And it’s probably the least understood part of the earnings test: Benefits withheld are not lost forever.

When you reach full retirement age, Social Security recalculates your benefit to give you credit for the months when benefits were withheld. But the payback isn't immediate. You won't receive a lump sum for benefits that were withheld. Instead, your monthly benefit is increased. Over time (typically 12–15 years) you recover the full amount that was withheld.

What about your spouse?

Your spouse may claim Social Security benefits based on a husband’s or wife’s earnings record as long as the spouse is age 62 or older and the higher-earning spouse is already receiving Social Security retirement benefits.

However, the lower-earning spouse may claim Social Security based on their own work record at age 62 even if the other spouse has not yet claimed.

So, if income is needed earlier, the lower-earning spouse can begin receiving benefits based on their own earnings record, allowing the higher-earning spouse to hold off filing and earn delayed retirement credits.

Once the higher earner begins collecting benefits, the lower-earning spouse may become eligible for a higher spousal benefit, assuming the spousal benefit exceeds their own.

At most, a spousal benefit can equal up to 50% of the higher-earning spouse’s benefit at FRA. If you claim spousal benefits before reaching your own full retirement age, that benefit is permanently reduced.

Importantly, the spousal benefit is always calculated using the higher earner’s FRA benefit (age 67 if born in 1960 or later), not the amount they actually receive. Delayed retirement credits do not increase spousal benefits.

For example, if the higher-earning spouse’s FRA benefit is $2,000 per month, the maximum spousal benefit is $1,000 (50%). Even if the higher earner delays claiming until age 70, the spousal benefit is capped at $1,000.

Final thoughts

Your decision will be influenced by a range of considerations, and you don’t have to navigate them alone.

We recognize the complexities involved, and our goal this month was to provide you with an overview. But we can help you explore various options based on your circumstances. While the final decision rests with you, we’re happy to support you and address any questions along the way.