Maximizing your Social Security benefits is a cornerstone of a strong retirement income strategy. With the right approach, you can make informed decisions that enhance your lifetime benefits and ensure greater financial security. At Mercer Partners Wealth Management, we provide personalized guidance to help you navigate the complexities of Social Security and optimize its role in your retirement plan.

When to Start Claiming

The age at which you begin claiming Social Security can have a profound impact on the benefits you receive. While you’re eligible to claim as early as age 62, waiting until your full retirement age (FRA)—typically between 66 and 67, depending on your birth year—ensures you receive 100% of your benefit amount.

For those who can afford to delay, benefits increase by approximately 8% annually until age 70. This higher monthly payment can provide a substantial boost to your income, especially if you expect to live a longer-than-average life. However, starting benefits earlier may be appropriate if you need immediate income or face health concerns that could limit your longevity.

Spousal and Survivor Benefits

Social Security offers opportunities to coordinate benefits within a marriage, ensuring you and your spouse can maximize lifetime income. Spousal benefits allow you to receive up to 50% of your spouse’s FRA benefit, even if you never worked or earned enough credits on your own.

Survivor benefits are another important consideration. If your spouse passes away, you may be eligible to receive their full benefit amount, provided you are at least FRA. This underscores the importance of strategically timing when each spouse claims benefits to maximize survivor income.

Divorced-Spouse Benefits

If you were married for at least 10 years, are currently unmarried, and meet certain criteria, you may qualify for divorced-spouse benefits. These benefits can provide up to 50% of your ex-spouse’s FRA benefit without affecting their payments. This option can be a valuable resource for retirees seeking to boost their income independently.

Tailoring Strategies to Your Unique Situation

Optimizing Social Security is not a one-size-fits-all process. Factors such as your health, income needs, marital status, and overall retirement goals play a significant role in determining the best approach. By integrating Social Security planning into your broader financial strategy, you can achieve a more secure and fulfilling retirement.

Mercer 360° Process: A Holistic Approach

Your Social Security strategy is not just a standalone decision—it’s an integral part of your broader financial journey. At Mercer Partners, we incorporate Social Security optimization into our Mercer 360° Process, ensuring every facet of your financial life works together to achieve your long-term objectives.

By aligning your Social Security decisions with your overall financial goals, we help you build a seamless strategy that adapts to your evolving needs. Our approach is centered around three essential steps:

ASSESS – We start by gaining a deep understanding of your unique financial situation, including your Social Security eligibility, retirement goals, and income requirements. This personalized approach allows us to design strategies tailored to your specific needs and aspirations.

BUILD – Leveraging advanced tools and insights from our proven process, we develop a comprehensive plan that integrates Social Security with retirement planning, tax optimization, and investment strategies. This holistic approach ensures maximum benefits, tax efficiency, and risk management, creating a solid foundation for your financial future.

MANAGE – As life changes, so do your financial needs. Our ongoing guidance ensures your Social Security strategy evolves alongside your circumstances, helping you navigate life’s transitions with confidence, clarity, and peace of mind.

At Mercer Partners Wealth Management, we specialize in helping clients make well-informed decisions about Social Security. Whether you’re navigating spousal benefits, deciding when to claim, or considering survivor strategies, we’re here to guide you every step of the way.

Thank you for allowing us to play a part in your financial journey. Your trust motivates us to deliver thoughtful advice and exceptional service tailored to your needs.

Chad Faul, WMCP

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