Why You Should Seek Expert Guidance Before Claiming Social Security

At Iowa Retirement Benefits & Solutions, we frequently receive questions about Social Security and its role in retirement planning. While many retirees assume claiming benefits is a simple process, there are numerous factors that can significantly impact your lifetime income. Making uninformed decisions can result in costly mistakes, reducing the benefits you’ve spent a lifetime earning.

That’s why seeking guidance from a knowledgeable financial professional before starting Social Security is crucial. A qualified advisor can help you develop a strategy that maximizes your benefits, minimizes taxes, and ensures your financial security throughout retirement.

Key Reasons to Work with a Financial Advisor for Social Security Planning

1. Maximize Your Lifetime Benefits

The age at which you claim Social Security affects your monthly benefit amount for life. While you can start as early as 62, delaying benefits until full retirement age (or even 70) can significantly increase your monthly payments. A financial professional can analyze your earnings history and projected income needs to help determine the optimal claiming strategy for you.

2. Avoid Tax Pitfalls

Many retirees don’t realize that their Social Security benefits may be subject to federal (and sometimes state) taxes. Your total income—including withdrawals from 401ks, IRAs, or pensions—determines how much of your benefit is taxable. A financial professional can create a withdrawal strategy that minimizes your tax burden and preserves more of your benefits.

3. Navigate Spousal & Survivor Benefits

Married, divorced, or widowed? You may qualify for spousal or survivor benefits, which can sometimes provide more income than claiming on your own record. However, these benefits come with specific eligibility rules and timing considerations. A financial professional can help ensure you’re choosing the option that gives you the highest possible payout.

4. Coordinate with Other Retirement Income Sources

Social Security is just one piece of your retirement income puzzle. An advisor can help you integrate it with other income sources, such as pensions, annuities, or investment withdrawals, ensuring that you have a steady, tax-efficient income stream and won’t outlive your savings.

5. Protect Against Inflation

While Social Security benefits receive cost-of-living adjustments (COLA), inflation can still erode purchasing power over time. A financial professional can incorporate inflation protection into your overall strategy, ensuring you maintain your lifestyle as costs rise.

6. Develop a Personalized Claiming Strategy

Every retiree’s situation is unique, and a one-size-fits-all approach to Social Security doesn’t work. Depending on your financial circumstances, an advisor may recommend strategies such as:

• Delaying benefits for higher monthly payments.
• Filing a restricted application (if eligible) to maximize spousal benefits.
• Claiming spousal benefits first before switching to your own record later.
• Strategically withdrawing from retirement accounts to reduce taxable income and avoid benefit reductions.

7. Avoid Costly Mistakes

Claiming Social Security at the wrong time or without considering all available options can significantly reduce your lifetime benefits. Common mistakes include:

• Claiming too early and permanently locking in a lower monthly payment.
• Overlooking spousal, survivor, or divorced spouse benefits.
• Ignoring the impact of working while collecting benefits before full retirement age.

Take the Guesswork Out of Social Security Planning

Navigating Social Security can be complex, and mistakes can be costly. Rather than leaving your retirement income to chance, let a knowledgeable financial advisor guide you through the process.

If you’re unsure about when to claim benefits or how Social Security fits into your overall plan, our team at Iowa Retirement Benefits & Solutions is here to help.

Schedule your free and confidential strategy discussion today!
Click here to book your appointment, email us at info@iowaretirementsolutions.com, or call 319-423-3332.

Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.