[00:00:00] Speaker A: Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.
[00:00:26] Speaker B: We don't just build wealth, we build legacy.
Welcome to the Retirement Income for Life show with Doug Vincent. For over 30 years, Doug has helped families right here in the D.C. area turn hard work into lasting income, helping you protect what you've earned, provide for your family, and retire on your terms.
This is where preparation meets opportunity. This is the Retirement Income for Life show. Here's Doug Vincent.
[00:00:55] Speaker C: Social Security is too valuable to leave unplanned.
On today's show, we will discuss Social Security claiming strategies, spousal benefits and survivor income. Welcome to the show. This is Doug Vinson. Shout out to all my listeners in Washington, D.C. maryland, Virginia.
We are still scheduling 100% complimentary consultations in my Greenbelt office in person.
Or you could set that up in zoom if you're outside the local listening area.
100% free, no obligation for those meetings. Also our podcast and our YouTube channel. You can listen to all of our previous episodes, you know, videos.
You can, you know, see all of the information that we've provided over these last few months. Don't hesitate to contact us as well by phone. 301-242-3950.
We want to help you.
On our website, we also have a free download which is called the Retirement Income for Life Survival Kit. You can get that 100% free. Just enter your information in so we know how to get that to you at Retirement Income. The number four L I F e dot com. So as we dive in today on Social Security, you need to know that Social Security can be one of the largest lifetime income sources. You know, family owns. Okay. The filing date affects more than just your first paycheck. Okay. This is something that you have to plan out and so you have to consider before selecting. When you take Social Security, you want to consider your taxes. You know, any withdrawals from your 401k.
How does Medicare costs play into this? And you know, what income would be left for your surviving spouse if you know, one of you died and you're married. If you're wondering when to file, reach out to us for a complimentary consultation. You know, let us know how to, you know, we can meet with you and talk about when you should file. You know, in general, 62 is the earliest you can file. In general 70 is the latest you can file.
And it's no right or wrong answer related to when you should take it.
It's connected to your planning. Okay? So once you've planned out Social Security, that will is going to let you know when you should take it. So set up a free consultation with us. We can walk that, walk you through that on when and why you should be taking it early, or should you be waiting to your full retirement age or should you wait to the age of 70? So on today's show, let me give you an overview. We're going to talk about, you know, that Social Security is much more than just a monthly check, okay. It's much more to it. And this benefits that Social Security provides it. You have to consider it as a part of your retirement income for life plan. Okay? You have to consider inflation, cost of living. Okay? This is a valuable family benefit. But you can't look at it as just, oh, I'm going to get my, you know, check. So we'll talk about that. What's the best age to claim?
I hear that in my office once a week. So when should I take Social Security? First thing I say is, I don't know. It depends on who you are. Okay? So we're gonna compare claiming at age 62 for retirement age and 70 and explain to you why timing is gonna matter with that. All right? Are you married? Are you divorced? You know, strategies can be different if that is who you are. So how spousal or survivor or divorce spouse benefits can affect your retirement income. And there's some strategizing connected to that, things you need to know. We'll dive into that. And then finally, we need to discuss some of the things that are related to Social Security in today's environment in the real world. Okay. Learn how Social Security fits with your taxes, Medicare, your retirement savings, plus the latest proposal from Washington. A lot of people are thinking Social Security is not going to be around. And so we'll dig into that as well. All right. Some financial wisdom, you know, quote of the week comes from Gene Perret and he says retirement is wonderful.
All right. That's the first thing he said is that, is that you. Is retirement wonderful for you?
Retirement is wonderful. It's doing nothing without worrying about getting caught at it.
So you worried about getting caught at something? Well, once you retire, you don't have to worry about getting caught. You're retired, you're there. Hopefully you are in a position where that retirement is something that you're loving or if you're planning to Retire that you're on your way to your dream on retirement. Okay? So let's dig in here and we'll talk about, you know, Social Security. Right. Social Security doesn't happen on an island, okay. And Social Security can provide dependable income for life, but the amount retirees receive depends heavily on the decisions they make before filing. Okay? This has to be planned out a lot of different factors like your claiming age, what age am I going to take it, you know, my marital status, my work history, taxes, you know, the survivor needs that are going to, you know, affect, you know, how this supports your household if you weren't there, and that you're leaving a spouse behind in retirement. Right. So we want to explore the essential questions for retirees and pre retirees.
How can thoughtful claiming strategies help you make, you know, the most of one of these? This is the. One of the most valuable retirement assets that you will have. Okay. As we do our calculations, it's going to be about a fourth for a lot of people, a fourth of your lifetime income in retirement, it's not going to be 100%, but a fourth is a big amount. And for, you know, some people, it might even be more than that. So you have to recognize that Social Security is just not another check that you, you know, go and get. Okay? It's one of the most valuable retirement benefits that you will ever receive. It's a single lifetime annuity. Okay? It's coming for the rest of your life once you turn it on. Okay. And so when you think about retirement, most people, they just focus on, oh, I got to get my big 401k or IRA, but how does Social Security play into that overall package so that it's a valuable asset, you know, in your portfolio? Okay. And the problem is that many people think of Social Security as just another monthly payment from the government.
In reality, it's got to be much more than that for you. Okay? It's a lifetime income stream. It has built in protections that would be incredibly expensive, if not impossible, to recreate on your own. Okay? If you're able to get 2, 3, $4,000 a month from Social Security, and if you're married, another two, $3,000 a month, it's going to be hard for you to. To recreate 5, 6, $7,000 a month out of thin air. And so think about that when you talk about this and when you think about Social Security, it deserves a much bigger role in your overall retirement planning. And that's why we spend a lot of time focusing in on when and why you should take Social Security. So Social Security, when you look at your statement and you understand how it's calculated, it's calculated based on your work history, okay? It's not just an account balance, is about work history, okay? Unlike a 401k, Social Security doesn't have an account with your name on, okay? Instead, your benefit is calculated using your highest 35 years of inflation adjusted earnings, okay? If you worked fewer than 35 years, listen carefully, those missing years are counted as zeros, okay? Which can reduce your benefit, okay? So 35 years is the sweet spot. But the good news is that continuing to work even later in life can increase your benefit. If a higher earning year replaces one of those lower years in the calculations, they're going to take the high threes, okay? And so the longer you continue to work, the higher your salaries are. Those zeros can be replaced. And you, you want to make sure that you understand this as you're reviewing that statement where you can actually see
[email protected], you can open an account there and see your statement any day of the week. And you want to make sure those high threes, you want to make sure your salaries are accurate so that when they're calculating these benefits that they're using numbers that are accurate and apply to you, all right? This is going to provide income to you that you can't outlive. Okay? Once this is turned on, this is one of the advantages of Social Security. It's going to keep coming for as long as you live, okay? You don't have to worry about running out of money because an account balance has been depleted like a 401k or IRA. This is like a pension that comes to you, a single lifetime annuity. Look at it as a pension that will not stop as long as you are alive, okay? So this benefit also receives annual cost of living adjustments, okay? It's not guaranteed, but you can track back and see that over the last 50 years or so COLAs have been applied.
That means when inflation rises, right.
Your monthly amount or your yearly amount for Social Security rises, right? So it's helping you keep pace with inflation or purchasing power that you know is going to continue to increase over time. Think about it. Is cost of living in inflation going up?
Probably so. And so there's a built in feature that this is taken into consideration each year. And Social Security normally has a cost of living adjustment to it which helps you keep up with inflation. All right? So this isn't just about you, okay? Keep in mind that you know, there are people depending upon your situation. Okay, Spouses, you know, even, you know, former spouses. Okay, that. We'll talk about that. Surviving spouses, any dependent children, individuals with disabilities.
Social Security is designed as both a retirement income program and also a form of family protection. Okay? So it's a foundation. It's not the entire plan. Okay. Social Security provides an important source of guaranteed income, okay? But it's never intended to replace your entire paycheck in retirement. Once again, on average, it's going to probably be about a fourth. And so for most retirees, it's going to cover a portion of the income that you need.
Additional income needs are often going to come from those other places that we always discuss. Retirement savings, pensions, other investments, and other guaranteed income strategies that we help people with on a daily basis. It's an overall retirement income plan for life.
Social Security plays a big part in this, okay? It's so important that you work with a professional. You make sure that you are coordinating why and when you claim Social Security, Right. And how does it play in play a part of the rest of your retirement income plan?
Filing too early or without consideration of taxes, investments, and other income sources can have very, you know, consequential. These are lasting consequences that you would regret if you don't plan this out properly. Okay? So let me give you some statistics. 71.3 million Americans were receiving Social Security benefits as of June 2026. Okay. 57.5 million of those were retired workers receiving retirement benefits. Okay, so what does that mean? Two checks, right? Social Security Administration paid out 1 38.1 billion in benefits during the that month alone. So June of 2026, 138 billion was paid out.
Okay? And so when you're thinking about this, the key is simply deciding whether to claim. Okay? It's determining. It's not. It's not simply deciding whether you're going to claim. It's determining when to claim and how that decision fits into the rest of your retirement income strategy. So here's a tip for you before you decide when to claim Social Security, okay? Log into your My Social Security account, okay? That's SSA.gov if you've never set up an account, you don't get those green statements every year like you used to. Okay?
You can see your numbers each and every year. You want to go to that place. You want to review your earning history.
You want to see if you have enough credits, you know, to, you know, be eligible to receive your benefits. But you want to make sure the information is accurate. This is human beings plugging in this information. Okay. And, you know, it's possible that your information is not accurate. Okay. You want to compare, you know, the projected Benefits at age 62 to your full retirement benefits, which is either 66 or 67 for MO for the most part, could be 66 in some months. And then you also want to compare that to age 70. That 70 number, of course, is going to look a lot bigger than 62. Doesn't necessarily. You wait eight years, you know, doesn't necessarily mean if you're full retirement age of 67, you wait five years. But why are you taking it at 62? Or why are you waiting? Right. Even a well planned claiming strategy can mean thousands of dollars in additional lifetime income. All right? So a well planned claiming strategy can mean thousands of dollars in additional lifetime income. There's a calculator also on SSA.gov, you can plug in hypothetical numbers. I believe I'm going to live this long. I want to take it at this age.
How much would that pay out for you based on the crystal ball of those numbers?
[00:15:46] Speaker B: Yeah, I know.
[00:15:47] Speaker C: You don't know when you're going to die. Of course, we don't know that. But you know how healthy you are. You know how old your mother and father are. You know what the longevity is in your family. You know how you feel right now. You know, as it relates to how long you think you're going to make it. And so there are certain numbers that would play out based upon short term or long term. Okay. And so I don't know about you, but I don't want to leave any money on the table. Okay. So wondering how much of your retirement income Social Security is really expected to provide? If you're wondering that. Okay. That's the exact kind of questions we help clients answer every day.
[00:16:25] Speaker B: Okay.
[00:16:26] Speaker C: We'll show you how your Social Security benefit fits alongside your investments, your taxes, any other income sources that you have. We want to help create a retirement paycheck that's built to last. Okay. And so that's why we set up our free consultations around Social Security right here in our local office in Greenbelt. You can go on our website, request a 100% free consultation. If you're in the DMV area, I encourage you to come to our Greenbelt offices. If you're outside the area, you can set up a Zone Zoom meeting. Give us a call. 301-242-3950.
Go on our website. Retirement Income, the number 4L. I F E dot com.
You know, schedule your Social Security review, you know, today, all right? Something we can help you with and something we're doing on a regular basis, all right? When should you claim Social Security, Mr. Vincent? I hear this all the time, Mr. Vincent, when should I take Social Security? I say I don't know, okay? If you go get hit by a bus at 63, you should have took it at 62. Just joking, just kidding. Think about it. If you're not going to live into, you know, your 70s, yes, you should take it as early as possible, okay? But if you're going to live to 100, you probably should have waited to 70. The math works out. The longer you wait and the longer you live, the more money you didn't leave on the table. Okay? So this is one of the biggest retirement decisions you'll ever make, okay?
You know, should I take it at 62? Should I take it to 67? Should I take it at 70? Okay? Each one of those ages, based upon your unique situation, could be solving a different problem, okay? And so there's no universal best age to file, okay? I can't give you the universal best age, okay? Claiming at 62, waiting until full retirement, delaying until 70 can all make sense depending upon your financial situation and retirement goals, okay?
So let's look at what those different filing ages really mean, okay? Claiming early comes with a trade off. So in General, you know, 62 is the, in general, number four retirees today taking their Social Security benefit early, but that's not your full retirement age, okay? Today the full retirement age is 67, okay? And so claiming as early as 62, listen carefully, means receiving checks sooner, okay? But guess what? Your monthly benefit will be permanently reduced by roughly 30% compared to waiting until full retirement age, okay? So you're taking your benefits early, which you're eligible to do if you have the credits, but you're getting. It's a reduced benefit, okay? The Social Security system is set up for a full retirement, but you're retired, not getting another check, okay? And so if you're going to do that, just know it's at a reduction, okay? The smaller starting benefit also means future cost of living adjustments, you know, are applied to a lower amount, okay? So that gap can continue to grow over time. Just understand that if you're going to take that as 62, okay?
If you wait, you know, it can mean a much bigger monthly check, okay? So weigh the options, okay? When you look at your 62, your 67, your 66, your 70 number, okay? If you can wait beyond your full retirement age, your benefit earns delayed retirement credits. Okay? So if your full retirement age is 66 and you wait to age 70, that's a 32% delayed retirement credit.
32%. If you're 67, 67 is your full retirement age. That's 24%. It's an 8% per year, you know, interest credit, delayed retirement credit at 8%.
As long as you wait, you know, as, you know, 62. So 62 to 63, 8%. 63 to 64, 8% all the way to age 70.
And that's something that you want to think about. Where could you put your money right now? You tell me. Give me a call at my office, 301-242-3950 and tell me where you could put your money. Invest your money at 8% guarantee, compound interest, no risk. All you gotta do is stay alive. Please call me and tell me where that is. I don't, I don't know of any. But I do know that's what Social Security provides for you. So you want a plan to make sure that if 70 makes sense, you know why. If 67 makes sense, you know why. If 62 makes sense, you know why. After age 70, there's no financial advantage to waiting long. You've earned the maximum retirement benefit available. Okay? So waiting past age 70 is not helping. You know, taking it at 62 is potentially a 30% reduction.
Waiting to age 70 is potentially a 32% or 24% delayed retirement credit. What say you when you should take Social Security? All right, now, the best filing age is going to depend upon your plan, okay? Your retirement income for life plan. That's going to determine, that's going to answer the question for you. When is the best time to take. All right, the largest monthly check is not automatically the right answer for everybody, okay? Waiting to 70 is not the right answer for everybody. Okay? Your health, consider that your life expectancy. Consider that. How much retirement savings do you have? Your taxes, what are your income needs? You know, are you married and, you know, you know, married or single, divorced, you know, what does that look like? You know, all this can influence, you know, the best claiming strategy for you as you do this full financial plan connecting in, why you're taking Social Security and at what age. So for some people, claiming earlier provides needed income.
For others, the land can create more lifetime income and potential, potentially a larger survivor benefit for your spouse. Okay, so let me give you Some other statistics. 62% of retired workers claimed benefits before reaching Full retirement age and receive permanently reduced benefits. So these, over the years, these numbers fluctuate. But right now, 6.2 out of 10 are taking it early. Okay? More than 6.7 million retirees have delayed retirement credits built into their benefits. So the average monthly Social Security benefit today is approximately $2,823. Okay? So compare that to your 62 number, your 67 number, your 70 number, and where do you fall as it relates to the average Social Security benefit in the country today? So here's a tip for you. Don't compare monthly benefit amounts in isolation, right? Build a retirement income plan that shows you how you'll fund the years before claiming. How am I funding these retirement years? What am I funding these retirement years with? Okay, how are my taxes affecting my income? Right. And how does each filing age impact my long term financial security? If I waited from 63 to 64, how would that affect me? If I waited to 60 from 65 to 70, how is that going to affect me? Right? Do that analysis. Think that through the bottom line. Choosing when to claim Social Security isn't about picking the highest number on the chart. It's about choosing the strategy that best supports your overall retirement income plan. Okay? I can't say that enough. The right decision is the one that works not only for today, but for the decades that your retirement may last. If you are going to be in retirement for three decades, 30 years, two decades, 20 years, should you wait to take, you know, your benefits later? Okay? Think about these things as it relates to income, need, cost of living and inflation and all of those things related to that. So the listeners that are listening today and those that are setting up the consultations with us, you know, I'm not sure if you're setting, you know, you're taking your benefits at 62, 67 or 70, I don't know what makes the most sense for you. Okay? We'd be happy if you'd want us to, to help you compare the options and see how each one fits into your overall retirement income strategy. Schedule your complimentary retirement income review. Okay? And let's make sure your Social Security decisions support the retirement you've worked so hard to build. Okay, Give us a call. 301-242-3950. Okay. Go to our website. Okay. Enter in your information at retirement income the number4l I f e dot com.
We will set up that 100% free consultation to go over all your Social Security numbers. We'll do that today. Let us know if we can help you.
[00:25:54] Speaker B: Visit retirementincome4life.com to download your free Retirement Income for Life Survival kit. That's retirement income the number4life.com
[00:26:06] Speaker A: if you're looking to cut back on your spending, look no further than your local Library. I'm Matt McClure with the Retirement Radio Network powered by Amerilife.
We all know a free library card can get you access to just about any book you would ever want to read.
But did you know it's also a great resource for other free forms of entertainment?
[00:26:26] Speaker C: You can actually save hundreds of dollars every year on a lot of different services.
[00:26:30] Speaker A: Sherry Lowe, also known as the Queen of Free, recently told TV station WTHR about free audiobook programs.
[00:26:38] Speaker C: We think about physical books, but actually audiobooks not just on CD from the library, but also on apps that you can stream straight from your phone with your library card are so, so easy to use, she says.
[00:26:50] Speaker A: You can also get access to free streaming services so you can watch your favorite movie or TV series at no cost.
[00:26:56] Speaker C: Your library has a complimentary sort of app that you can use to be able to get those favorite TV shows and movies for free on your phone or your digital device.
[00:27:06] Speaker A: The public library near you may also give you access to free music classes, workshops or other group activities. And the benefits don't stop at your wallet. Reading is a great way to stay mentally active, and with a public library, you'll never run out of new reading material.
So did you know your local library could save you a good chunk of change? With the Retirement Radio Network powered by ameraLife, I'm Matt McClure.
[00:27:31] Speaker B: Retirement is more than money. It's about family, freedom and legacy. Join Doug Vincent for the Retirement Income Life Show, Saturdays at 6am on Magic 102.3. Get the tools and strategies you need to turn your savings into reliable income you can count on. Visit retirementincome4life.com that's retirement income the number4life.com or call 301-242-3950 to schedule your complimentary consultation today.
Welcome back to the Retirement Income for Life show with Doug Vincent, helping you turn your savings into income you can depend on. Remember, you can listen to the show anytime. Subscribe wherever you get your podcasts. Let's dive back in.
[00:28:17] Speaker C: All right. Married, your Social Security decision isn't just about you. You're married. Your Social Security decision isn't just about you. Okay, so how your spouse wants survival benefits can shape your retirement income is vitally important when you are deciding when you want to. You know Take your Social Security, okay? You got to consider your spouse. You've got to consider what would happen if the income, you know, was, was not there and you weren't there. You know, when it comes to Social Security, okay, Married couples sometimes make the mistake of thinking there are two separate decisions to make, okay? One for each spouse.
It's not really how retirement works, okay? If you are married and you all are used to the two incomes and you're continuing to thrive in your retirement years, okay? The goal isn't to maximize each individual monthly check. The goal is to maximize the income the household receives, okay? Think about that. You want overall household income to be maximized, okay? And it's including, you know, you know, both spouses while you are here, but then also factoring in when one spouse is gone, okay? So let's look at why claiming strategies matter, you know, and it's very important for couples. So spousal benefits can make a big difference, right?
An eligible spouse, okay, may receive up to 50% of the other spouse's full retirement age benefit if that amount is higher than their own benefit. So if you've been married and you have, you're eligible for your own individual Social Security amount. And let's say it's $2,000. But let's say your spouse's Social Security benefit at full retirement age is 5000.
That would mean 2500 or 50% of that 5000 is higher than your $2000 on your individual record.
You are eligible to receive the higher of the two, okay? It's important to remember that the 50% calculation is based on the full retirement age, okay?
Not the larger benefit that they may be waiting for at age 70, okay? So this is gonna be based on that 50% is based on your full retirement age, okay? In most cases, the higher earning spouse must begin receiving their own retirement benefit before a spouse can collect a spousal benefit. There's been a lot of changes, you know, back and forth here related to this, but in general, and in most cases, okay, the higher earning spouse must begin receiving their own benefit before spouse can collect a spousal benefit. So that's in general, maybe some nuances there, but let's continue. So survivor benefits are even, you know, more important. And it's one of the most overlooked aspects of Social Security.
And what happens if the first spouse passes away, okay? The surviving spouse, okay, doesn't continue to get. The household doesn't continue to get two checks. So for instance, one spouse was receiving 4000. The other spouse was receiving 3000. That's $7000 of household income, okay? The spouse that was receiving 4000amonth dies, okay? The surviving spouse will get the higher of the two. So they surviving spouse will now get $4,000. So do you understand why it's so important to plan taking Social Security with the end in mind? You know, of course, with the household income of two checks in mind as well. But think about this. How would $3,000 gone away from household income because one spouse passed? How would that affect your day to day, okay? Would you have to make drastic adjustments, you know, now that, you know, $36,000 has left the household, you know, along with the spouse that passed away, okay? This planning, you know, must be done, you know, ahead of time before you choose, okay? You want to think through this, you know, before, you know, something happens, okay? And once again, this is overlooked.
You know, the surviving spouse, you know, generally is going to keep the larger of the two Social Security benefits, not both. This is overlooked. A lot of people think those both of those checks because I was married are going to continue to come in, okay? One monthly check. Listen clear carefully. One monthly check is going to disappear, okay? Many household expenses though, are going to remain, okay? So just because a spouse is taken off the scene, it doesn't mean that mortgage is any lower, okay? Doesn't mean that those credit cards or anything that you carried into retirement, okay? Car notes, things of that nature, those will not be reduced just because your Social Security benefits were reduced, okay? And so that's why the higher earners claiming decision can have long term consequences, okay? Delaying benefits may not only increase, but their own retirement income. It can also provide a larger survivor benefit for the surviving spouse. You see why planning is so important, okay? So think like a household, not two individuals, okay? When you're making these decisions on when you want to take Social Security, think about the household, not just individual checks, okay? Every couple is going to have different situations, okay? One spouse may have spent years raising children or caring for the family and that's going to result in a smaller earning record, okay? Others may have similar earnings, right? You might be getting two big checks, okay? And you know, spousal benefit is not needed because my earnings was fine on my own record.
The right claiming strategy depends on both earning histories, okay? The right claiming strategy is going to depend on both earning histories, both filing ages, your overall retirement savings and your long term income goals.
Plug Social Security in for both of you all into that dream retirement. Include that for longevity as it relates to, you know, your retirement income. You Know for life needs. Right. Instead of asking when should I claim?
Okay, there's a question I get all the time, when should I claim? Okay. A better question is what's the best strategy for our household over the next 20 or 30 years?
Let me say that again.
Don't ask the question when I should claim what age? You know, why, you know, the, the question to ask yourself and your spouse is, what's the best strategy for our household over the next 20 or 30 years? People are living longer and it's, it is very common to see a full working career in retirement right here in the DMV. I'm, I'm seeing it.
85 and 90 year olds, 75 and 80 year olds are walking in my office every week. Okay. Longevity is in the cards.
Plan Social Security around household needs, household income. All right, here's some stats for you. More than 2.1 million spouses currently receive Social Security spousal benefits. And that average monthly benefit is $986 per month.
Okay. That's on average, nearly 5.8 million Americans receive survivor benefits through Social Security. Okay. The average benefit for widows and widowers receiving survivor benefits is approximately $1,931. Okay. So almost double that amount. So here's a tip for you to consider as you, your spouse, you individually are thinking through, you know, Social Security. Right. Don't just estimate what your household income looks like. While both, you know, your spouse is, you know, while both spouses are living, don't just look at it as the living benefit. Also, run the numbers. Assuming only the higher Social Security check is going to remain, can you make it on one of those checks along with the other, you know, income streams that you have coming in. That simple exercise can reveal whether additional income for savings, investments, pensions, or other strategies may be needed to help protect the surviving spouse. Okay, so what's the bottom line here for married couples? Okay.
Social Security isn't simply about maximizing two individual benefits, getting two checks, right? It's about creating the strongest possible lifetime income plan for your household. A thoughtful claiming strategy today can provide greater financial security for both spouses, especially for the one who may someday be left behind.
Chances are you both are not going to die at the same time. Right? So if you're married, your Social Security decision deserves more than a quick online calculator. Okay. We'd be happy to help you evaluate both spouses benefits, compare different claiming strategies, see how those decisions fit into your overall retirement income plan. Right. Schedule some time with us today. We'll do that review. We'll make sure you're planning, you know, for both of your futures. Give us a call, 301-242-3950.
Go to our website, www.retirementincomethenumber4l I f e dot com. Also, don't forget, we do have a free download on our website. It's a retirement Income for life survival kit that does include a lot on Social Security.
Don't hesitate to download that free download today right at our website. You can get that absolutely free. All right? Now, if you're divorced, okay, don't overlook your Social Security options, okay? A lot of people are confused on, on this. We want to unpack this. Today is a, you know about a former marriage. You know, you may still qualify for benefits, okay? Many people assume that once a divorce is finalized, every financial connection to their former spouse disappears.
That's true in most cases, but not when it comes to Social Security, okay? Depending upon your circumstances, a previous marriage could still provide valuable retirement benefit benefits even years after the divorce. Okay? So let's see if you qualify. You fall into that category, okay? You must, you know, you may qualify on an ex spouse record, okay?
We call this the Johnny Carson record, and I'll explain that in a minute. So you may qualify for on an ex spouse record. And let me, let me give you that data here. If you were married for at least 10 years, okay, you may be eligible to claim Social Security benefits based on your former spouse's earnings record, okay?
And so, you know, you're married 10 years, you're no longer married, okay? Now you're single, okay? But you were married 10 years, okay?
And if your individual benefit is less than 50% of your spouse's benefit, okay, you are eligible for those benefits, okay? So let me say it again, let me say it another way.
Your benefit on your earning record is 2,000.
Your spouse's or ex spouse's benefit is 5,000.
So you're eligible if you were married 10 years, you're still single, okay? You're eligible for $2,500 a month. It doesn't affect your ex spouse's record. It has nothing to do with him or her.
It simply falls under that you were married 10 years, still single, and your benefit is lower than 50% of your ex spouses. We call that the Johnny Carson rule because he had four spouses at one time getting 50% of his, his benefit. They all qualified for this 10 year rule. They were still single. And, you know, people wondered all the time, well, how did this affect his, you know, Social Security benefits, it didn't affect it at all. It was beneficial for those ex spouses. All right, let's move on. So generally, you must be at least 62, currently unmarried, and your own retirement benefit must be lower than the benefit you're eligible to receive on your ex spouse's record. Okay? So keep that in mind. Must be 62, currently unmarried. You were married 10 years, but now you're, you know, unmarried, your benefit that you would claim on your own is less than 50% of what your ex spouse's full retirement benefit is. So in some situations, right, if you've been divorced for at least two years, you may be, you know, even able to claim a divorced spouse benefit before your former spouse begins collecting their own retirement benefit. Because that's something we can talk to you about one on one. We'll dig in more on that if that, if that's you call us, give us a call, get on our, our calendar for consultation. We can dig into all these specifics.
You know, one on one.
If you've been, you know, married, divorce two years, married, divorced 10 years, we can definitely look into how this possibly affects you in a, in a, you know, positive way. All right? Claiming doesn't affect your former spouse, okay? Just because you claim, just because, you know, there's two or three ex spouses on his or her record, you know, it's a misconception, misconception that it affects the ex spouse's record. It does not, it does not reduce their benefit. It doesn't affect it at affected at all. Has nothing to do. Remember, it's a single lifetime annuity, okay? You'll receive a single lifetime annuity. Your ex spouse will receive a single lifetime annuity.
It doesn't reduce the benefits paid to either spouse. You know, it doesn't affect the current spouse. If your ex spouse is remarried, you know, other family members, and you know, you know, and your former spouse isn't notified, nobody's notified about this. You're filing, you know, nobody's going to know that this happened. This is an individual situation here as it relates to Social Security benefits.
Your ex is not involved, okay? If you don't tell him or her about what is going on, the Social Security Administration is not going to disclose that confidential information either. So just know your rights, know your benefits, know what you have available to you potentially, and then discuss that with someone like us and we can help you think through all those, all those details. All right?
Here's a tip for you, all right? If you've Been divorced. Okay, think about this for a second. If this is you, make sure your retirement planning includes a review of your Social Security options, okay? As a part of a healthy retirement income for life plan. Pre retiree retiree, okay? This has to be considered. You may be leaving money on the table. You may be in a situation where you're making a mistake on filing, you know, you know, incorrectly. And a marriage that lasted 10 years or more could provide benefits that many people don't realize they're entitled to receive. Okay? So here's the bottom line for you.
You know, divorce doesn't always end your Social Security rights, okay, to that former ex spouse, okay? If you were married 10 years, you know, you gotta review those options. You could be uncovering benefits that you might have been leaving on the table, okay? If this can affect your retirement income in a positive way, okay? Isn't this something, Would you agree with me? That's worth looking into. So if you've been divorced and aren't sure what benefits you may qualify for, let's take a look together. We'll review your Social Security options and help you determine a claiming strategy that best fits for your retirement plan. You know, schedule your, your complimentary retirement income review right? At our website, retirement income, the number4lif.com, call our offices, 301-242-3950. We will be glad to walk through all of your options. Okay, so Social Security, hear me clearly. Social Security must fit the rest of your retirement income plan, okay? Your claiming decision does not exist in a vacuum, okay? It's one leg of the stool. It's one of the pieces, okay? We've covered a lot of ground today, and I want to make sure that we, you know, sum it up this way. You know, from, you know, we've talked about, you know, how we calculate your Social Security benefits. Choosing right age strategies for married couples strategy, even if you are divorced, okay? So let's wrap up now with one of those most important, one of the most important takeaways of it all.
Social Security, as I'll say it again, should not be viewed as a standalone decision, okay? We've been talking about tying this in to everything, tying this into all of the pieces of your retirement income plan, okay? So the right claiming strategy isn't simply about maximizing your monthly benefit. It's about making sure your Social Security works in harmony with the rest of your retirement income planning.
And, you know, this is going to impact you over the long term. You know, if you, you know, don't make the right decision here, okay? So working in retirement can affect your benefits as well. So let's talk about this. A lot of people think they're just going to go get another check at 62. No, that's not going to happen.
If you claim Social Security before reaching your full retirement age. Listen carefully. If you claim Social Security before reaching your full retirement age and you continue working, there's what's called a earned income limit, okay? You got to be aware of this, okay? Especially here in the DMV, okay? In 2026, you can earn up to $24,800 before benefits begin to be temporarily withheld. Okay? This is very important.
Above that limit, Social Security withholds a dollar for every $2 above $24,480. So you just making a hundred thousand dollars a year. You turn 62, you got the credits, hey, I'm going down to Social Security. Get me another check. They process that because you are eligible. It's not for them to do financial planning with you. And so then now you're wondering why you got a bill for $24,800. Because a dollar for every $2 over 24, eight, you make $100,000. They're asking for all that money back. You would not be. Well, you might be surprised at how many people this affects. How many people are thinking that they don't have any earned income limits before full retirement age, okay? Now, the good news is, if you got hit with that and, you know, maybe it happened to you one year, two years, I don't know. The good news is that once you reach full retirement age, the earning limits disappear.
Okay? So think about it. Social Security is a retirement vehicle. It's for retirees, not. I'm going to get another check, okay? So if your full retirement age is 67 and you don't plan on retiring until 67, then that means you probably should wait till 67 to take Social Security. Unless somehow, some way, you miraculously made under $24,800 here in the DMV. I'm sor. $24,480 here in the DMV. That's almost literally impossible if you're working full time around here. All right? So taxes and Medicare can change that math. Okay? And many retirees are surprised to learn that 85% of their Social Security benefits may be subject to income tax. We walk through this formula all the time with people that come into our office understanding how taxes are applied to your Social Security benefits and other income streams that you're receiving.
And it doesn't mean that you're taxed at an 85% rate. It simply means that up to 85% of the benefit may be included in your taxable income. So your Social Security. So your Social Security decision can also affect Medicare premiums. Okay? Higher income may trigger the IRMAA surcharges. Another thing that we dig in deep with in our consultations.
IRMAA surcharges, right. Increasing what you pay for Medicare Part B and Part D. Okay? Something that we will look at in an individual basis, but something that's very, very important. Okay. That's why it's important to look at Social Security along with the other income, the provisional income coming in from, you know, IRAs, your Roth, you know, your RMDs, your pension, you know, how does all these income sources play into what might be taxed related to Social Security? Should you be taking more Roth or municipal bond income that is tax free while you are setting up your strategy to have your income be in a lower tax bracket and be taxed even less on Social Security? You know, you have to make sure you factor in all of these things related to when you take Social Security, how it affects Medicare, if you're going to be paying more for, you know, Part B, part D, you know, the best claiming Social, the best Social Security claiming strategy. Once again, we've said this today a lot. Hear me again, the best Social Security claiming strategy is the one that fits your whole, your entire retirement picture, okay? When you coordinate your benefits with taxes, Medicare investments and your income planning, you can often make your retirement dollars go a lot further and avoid those costly surprises that tend to show up, okay? So as we wrap up here, let me give you a little bit of information that's in the, in the news. And, you know, how is Social Security going to be paid for? You know, there's, you know, money coming out of your check, every paycheck that goes towards it, there's a Social Security surplus, okay? And we've got to remember that this is an ongoing conversation that's, you know, on the Hill. And, you know, could Congress, you know, be poised to expand these benefits? You know, people are concerned if it's going to go away.
And so one of the headlines and provisions would provide, you know, one of the things that they're trying to do Is provide a 2% benefit increase for current and future beneficiaries of Social Security. Okay? Different legislation is going in all the time, okay? There's a lot of legislation going in about colas a lot of legislation going in about, you know, increasing minimum benefits and, you know, for lower income workers, improving, you know, survivor benefits. You know, the question always comes back to how is this going to be paid for? And so it's important that you understand what's in the news, what is actually fiction and what's also fact, okay? And you got to also remember that these bills that are being put in, they're only proposals, okay? Before anything changes, it would need to pass both the House and the Senate, you know, signed into law by the president, okay? So while it's, you know, worth watching, okay? And current Social Security rules remain in effect to this day. They're the same as they've been. You know, you hear the scuttlebutt all the time about the surplus is going to run out and, you know, reform is needed and, you know, different things of that nature. Okay?
Social Security, you know, is one of the most closely watched issues in Washington. And proposals like The Social Security 2100 act show there's ongoing debate about how to strengthen the program. Okay. Whether these ideas become law or not. Having a retirement plan that's flexible enough to adapt to future changes is always the smart approach, okay? And so I don't know how Social Security reform is going to affect you in a positive way, in a negative way, okay? But what I do know is only one part of the plan, okay? And so if you've been listening to these shows and asking yourself, you know, whether you should put together a retirement plan, you know, and today is specifically, when should I take Social Security?
You know, am I on track to retire? You know, I'm a pre retiree looking at working, you know, one, three, five more years. You know, we love the opportunity to help you work through, you know, the next year. You know, some people are retiring at the end of this year, but you might be, you know, even longer. Okay? We start our conversations all about you, okay? Whether you're retiring this year, whether you're retiring in 10 years.
You know, before we talk about any investments or strategies, you know, we want to understand what goals you have, you know, your priorities.
You know, what do you want your retirement to look like? Okay? We go through all your questions, all your concerns, you know, what do you want your financial future to look like? And then we dig in and take a comprehensive look at your finances. Okay? What have you saved? You know, we review your retirement accounts, okay? Your investments, you know, where the. Where what income sources are going to be coming in, you know, what is your Social Security going to look like, what is your pension going to look like? I'm not getting a pension. You know, my tax picture, your insurance, your overall strategy to see, we got to look at all these pieces to see how this all fits together. Okay. Then, you know, at that point we can identify your strengths, we can identify gaps, we can see where there are potential opportunities for you. And now we can dig into things like tax efficiency, you know, reducing your, you know, unnecessary risk. We want to try to increase your retirement income before you actually leave on the job. You know, we want to strengthen other parts of your plan. You know, we want to help you understand how all of these pieces tie in so that you can fulfill that dream retirement that you want to have. So from that point, we put together a strategy around your goals. You know, rather than offering a one size fits all solution, we'll outline recommendations that reflect your unique circumstances and then look into your overall long term objectives. And then now from there, it's time to put together your retirement income plan for life. Okay? Saving for retirement is only part of that journey. Okay? We've got to figure out now how to distribute it, how to preserve it. You know, we'll focus on creating a dependable income strategy designed to help support the lifestyle you want throughout retirement. Okay? So all those answers, you know, we're providing on a daily basis, there's no pressure. This is 100% free, either by way of zoom or right here in our greenbelt offices. You know, give us a call, 300-1242-3950. Stop by our website, retirement income the number4laife.com. Okay? You know, this is going to give you opportunity to ask questions, explore all your options. You know, you want clarity which is going to then produce confidence. You know, you'll receive straightforward guidance from us, okay? There's no obligation. We don't have anything to sell you. It's no sales pressure tactics. When the time is right, okay, we'll help you move forward, okay? You cannot move forward properly without a well designed retirement plan. This is the value that we provide. And putting this plan into action helps you turn your goals into the reality you want to have in retirement. Okay? So sometimes it's going, you know, all it's going to take, you know, think about it. Sometimes all it's going to take is just a conversation to get you clear understanding, okay? Where you stand, what steps you need to help you move forward. You know, it's going to get you, give you the confidence you need. Some people don't even think they can retire. Okay, this is going to help with that confidence. So schedule your free consultation with us as one, you know 100 free right here at our website. Retirement Income the number four lif.com 301-242-3950 as always, you can download your free Retirement Income for Life Survival kit right here at our website. Give us a call, let us know how we can help.
You know we talked a lot about Social Security today.
It fits your overall retirement income plan. We are here to help you. Just let us know. Reach out to us and we will definitely help you with your retirement income planning needs.
[00:58:26] Speaker B: Thanks for listening to the Retirement Income for Life show at Greater Washington Retirement Income Solutions. It's not just about retirement, it's about building income, protecting your family and creating a legacy.
Learn more at RetirementIncome4Life.com that's Retirement Income the number4Life.com or call 301-242-3950 to schedule your complimentary consultation today because your future deserves a plan you can trust.
[00:58:57] Speaker A: Greater Washington Retirement Income Solutions may conduct life insurance and retirement planning services in Maryland and may be licensed in other states. Financial professionals cannot conduct life insurance or securities business in states in which they are not licensed. This content should not be construed as an offer for the sale of insurance or securities products in unauthorized states or countries. Provided content is for overview and informational purposes only and is not intended and should not be relied upon as individualized tax, legal, fiduciary or investment advice. Neither Greater Washington Retirement Income Solutions nor its representatives provide tax or legal advice. For answers to specific questions and before making any decisions, please consult a qualified attorney or tax advisor. Investing involves risk, which includes potential loss of principal. Guarantees are subject to the claims paying ability of the issuing insurance company not affiliated with or endorsed by the Social Security Administration, the Centers for Medicare and Medicaid Services, or any other government agency.
