Social Security is often misunderstood, but it plays a crucial role in most clients’ overall financial strategy.
- It’s more than retirement — Social Security also covers disability and death benefits, protecting roughly 96% of workers aged 20-49.
- Delayed claiming increases benefits — Each year past full retirement age (FRA) that you delay adds 8% to your benefit, up to age 70.
- Benefits are adjusted for inflation — The annual Cost-of-Living Adjustment (COLA) was 2.5% for 2025.
- Benefits may be taxable — Up to 85% of your benefit may be subject to federal income tax depending on your income.
- Spousal benefits are available — A spouse can claim up to 50% of the other spouse’s benefit.
- Survivor benefits can be significant — A surviving spouse may receive up to 100% of the deceased’s benefit.
- Working while collecting early has limits — Benefits may be temporarily reduced if you earn above certain thresholds before FRA.
- Divorce doesn’t eliminate spousal benefits — If married 10+ years, you may claim on your ex-spouse’s record.
- Children may also receive benefits — Minor and disabled adult children of recipients may qualify.
- Benefits are based on your 35 highest-earning years — Fewer than 35 years means zeros are averaged in, reducing your benefit.
