1. Social Security Is More Than Just a Check

Think of Social Security as more than income it’s a safety net with multiple purposes. It acts as longevity insurance, providing income if you live into your 90s or beyond. It’s also a form of spousal protection, ensuring your partner has financial support if you pass away first. Some retirees even use early benefits for legacy planning, choosing to collect sooner and invest the funds for heirs. And don’t forget the investment return factor delaying benefits is like earning a guaranteed return that can pay off in the long run.

2. Don’t Overlook Spousal and Survivor Benefits

One of the most overlooked aspects of Social Security is how much it can support your spouse. At full retirement age, spousal benefits can equal up to 50% of the higher earner’s benefit. If you pass away, your spouse may be eligible for survivor benefits, which allow them to continue receiving the larger of the two benefits. Even divorced individuals can qualify for spousal benefits if the marriage lasted at least ten years. Knowing these rules could mean thousands of extra dollars for your household over a lifetime.

3. Taxes Can Shrink Your Benefit Check

Yes, Social Security can be taxed. Depending on your provisional income, up to 85% of your benefits may be taxable. At least 15% of benefits remain tax-free, and many states don’t tax Social Security at all. Recent tax legislation even added a $6,000 senior deduction for individuals age 65 and older from 2025 to 2028. Understanding how taxes apply to your benefits allows you to plan smarter and keep more of your income.

4. Working While Collecting Could Cost You, For Now

If you plan to work while collecting Social Security, know the earnings limits. In 2025, if you earn above $23,400, your benefits are temporarily reduced $1 withheld for every $2 earned over that threshold. But here’s the catch: those withheld benefits aren’t lost forever. They get recalculated into your future payments once you reach full retirement age. So working while claiming is not always a bad move, but it does require careful planning.

5. Timing Is Everything

Just because you retire doesn’t mean you have to start Social Security right away. If you wait beyond full retirement age (67 for most people), your benefit grows about 8% per year until age 70. Coordinating the timing of your Social Security with other income sources like IRA withdrawals or pensions can create a tax-efficient retirement income strategy. For some, delaying Social Security is one of the most valuable moves they’ll ever make.

Final Thoughts

At 60, you’re standing at a crucial crossroads. The decisions you make about Social Security in the next few years will affect the rest of your life. By understanding these five secrets, you can avoid common mistakes and maximize your retirement income. Remember, Social Security isn’t just about today’s check it’s about building a secure, flexible, and tax-efficient financial future.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

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