March 21, 2025 • 13 mins
In this episode of Your Retirement Guide, George Jameson, CFP® and founder of Capital Wealth Group, goes into detail 5 Simple Way to Increase Your Social Security Benefits and more.
Welcome to "The Retirement Guide" Podcast! I'm your host George Jameson, owner of Capital Wealth Group, a Fee Only Advisory firm. Whether you’re nearing retirement or already retired, Join me each week as we explore the world of retirement planning and equip you with the knowledge and tools you need for a successful retirement.
Thank you for tuning in to this episode of The Retirement Guide. If you enjoyed this episode, please subscribe & leave a review. If you'd like a free 30-minute retirement review, visit our website at www.capitalwealthplan.com to schedule.
This is for education only.It is not tax, legal, or investment advice. Before acting on any information consult your tax, legal, or investment advisor.
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Visit our Website: Capital Wealth Group
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Capital Wealth Group is a Flat Fee-Only Advisory Firm located in Columbia, SC , serving clients locally in South Carolina and North Carolina and virtually nationwide.
Any Questions or Topic Ideas? Send me an email at George@capitalwealthplan.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
George Jameson, CFP® (00:00):
Welcome.
Today we're going to explorefive simple ways to increase our
social security benefits.
But before we get started, I'mGeorge Jameson, certified
financial planner and founder ofCapital Wealth Group, located in
Columbia, South Carolina.
Social security is one of thecornerstones of retirement
planning, yet many of us aren'tcompletely sure how it works or
(00:21):
how we can maximize thebenefits.
Today I'll walk you through howSocial Security is funded.
The unique ways it calculatesyour benefits.
And most importantly, share fiveactionable strategies that may
help boost your monthly check inretirement.
So first, let's talk about howSocial security is funded.
It is funded by payroll taxes,6.2% from you, and 6.2% from
(00:46):
your employer applied only toincome up to a yearly cap of
176,100 for 2025.
This combined, 12.4% tax is whatbuilds your future benefits.
Next, how is your SocialSecurity benefits calculated?
The formula is a littlecomplex,, but here is what
(01:06):
really matters.
First, your past income yearsare indexed to reflect today's
dollars.
And second Social SecurityAdministration averages your
highest.
35 years of earnings.
If you have less than 35 years,zeros fill in the gaps lowering
(01:27):
your benefits.
And then third, those earningsare divided by 420, which are
the number of months in 35 yearsto get your average indexed
monthly earnings, also calledaim A IME.
And fourth, the Social SecurityAdministration takes your
(01:48):
average index monthly earningsand runs it through a formula
using what's called bend pointsthat favor lower income earners
to determine your primaryinsurance amount called P-I-A-.
PIA is actually just yourestimated monthly benefits at
your full retirement age, whichis age 67, if you're born in
(02:12):
1960 or later.
So what's most important foryou?
Keep an eye on your earningsrecord.
Log into your My social securityaccount.
At ssa.gov to check that yourearnings for each year are
accurate.
You can also see yourpersonalized estimated benefits.
Now we'll discuss understandingretirement ages and benefit
(02:35):
adjustments at your fullretirement age, which is age 67.
For most of us, you'll get ahundred percent of your primary
insurance amount.
However, as most of you know,you can start collecting as
early as age 62 or delaybenefits all the way up to age
70.
Okay, and here's why thismatters.
(02:58):
Starting your benefits beforeyour full retirement age means a
permanent reduction in yourmonthly payments.
For instance, at age 62, youreceive about 70% of what you
would get at your fullretirement age.
That's a big reduction.
At age 63, it's roughly 75%.
(03:20):
By age 64, you get around 80%,and at age 65, the benefit
increases to about 86%.
And at age 66 it's about 93.
And then finally, again, at yourfull retirement age, 67, you
receive a hundred percent ofyour calculated benefits.
Of course, you can also delaybenefits up to age 70.
(03:44):
Which will boost your socialsecurity benefits by 8% per
year.
So at age 70, you would getabout 124%.
This can be a powerful incentiveif you're in good health and
expect to live a long act ofretirement, but it's definitely
not the right choice foreveryone.
(04:05):
Please keep in mind that socialsecurity is a very
individualized decision.
And when to start will depend onmany factors.
You should not decide on when totake Social Security in
isolation.
The decision should be part of awell thought out retirement
plan.
(04:26):
Now that we have a handle on howsocial security works.
Let's dive in to the five simpleways you can potentially
increase your benefits.
So number one, work a full 35years.
It may sound obvious, but one ofthe best ways to boost your
benefit is to work a full 35years, even if it's part-time.
(04:50):
Social security calculates yourbenefits based on your highest
35 years, like we said, and ifyou have years with no income,
those years will drag down youraverage because it will show
zeros in front of those years.
So even part-time work is betterthan nothing.
And filling those gaps can makea big difference and number two,
(05:13):
wait longer to collect benefits.
it might seem smart to startyour benefits at 62.
A lot of people do and sometimesit is smart.
But you'll only get, again, 70%of your full benefit.
If you're tired of your highstress job and you're at the age
62, consider a less stressfuljob, or even a part-time gig and
(05:40):
wait until at least age 65,where you'll get almost 87% of
your full benefit versus 70% at62.
Of course, if you're healthy,continue that part-time gig and
wait until at least 67, whichcan really pay off.
And then number three,understand spousal and survivor
(06:02):
benefits.
If you're married or evendivorced after a long marriage,
10 years or longer to be exact,you might get extra benefits.
What do I mean?
You can choose to receive yourown benefits or up to 50% of
your spouse's or evenex-spouse's benefits, whichever
is higher.
(06:23):
Plus, if your spouse orex-spouse dies before you.
The surviving partner can get100% of their benefit at full
retirement age.
This can really help protectyour financial future.
And then number four, coordinatesocial security with your
overall retirement strategy.
This is a big one.
(06:43):
Your social security decisionshouldn't be made in isolation.
It's very important to considerhow your social security
benefits interact with othersources of income, such as
withdrawals from your retirementportfolio.
Possibly pensions and even taxconsiderations If you're married
and one spouse makes a lot morethan the other, the one who
(07:04):
makes the most may want to delaysocial security benefits.
So if he or she were to passfirst, the spouse who made less
would be able to get a hundredpercent of their other spouse's
social security.
And then number five, if youstart your social security at
age 62, planning to only make upto the maximum allowed, but end
(07:27):
up making more or have theopportunity to do so.
Please don't worry you haveoptions.
Just to clarify, in 2025 beforeyou reach your full retirement
age, for every$2 you earn over23,400, your benefit drops by$1.
Then in your full retirement ageyear, every$3 over 62,160 cuts
(07:54):
your benefits by$1.
But once you hit full retirementage, you can make as much money
as you want without affectingyour social security benefits.
So now that you got the figures,let's say you retired from your
stressful tech job at 62 andstarted Social Security because
you wanted your investments togrow and you decided to become a
(08:16):
realtor and sell homes part-timefor several years.
You thought that you could sella couple homes to make the
23,400 and then collect yoursocial security at age 62, but
you ended up loving it and doingvery well and making six
figures.
,so here's three ways to handlethis situation.
(08:37):
So first, keep getting thebenefits.
You'll likely still get somemoney now, and the money that
was held back because you wentover the limit will be
recalculated at your fullretirement age.
And then second, you couldactually withdraw your claim if
it's been less than 12 months.
(08:58):
And you're just killing it inreal estate.
You can pay back the benefitsyou got and it will be like
you've never started yourbenefits at all.
You then start social securitylater on at full retirement age
or whatever age you decide witha higher monthly benefit.
But keep in mind, you can onlydo this once And third.
(09:19):
You can suspend benefits at yourfull retirement age.
If you're now 67 and still enjoyselling real estate, still
making six figures and still ingreat health, you can pause your
benefits to earn extra crediteach month, which will boost
your monthly check later on.
(09:39):
So what's the bottom line?
If you started Social securityat 62, which a lot of people do,
and you're still working, don'tstress about how much you can
make.
If you earn more than youexpected to, social Security
will credit you for it when youhit your full retirement age.
So keep doing what you love andenjoy your success.
(10:00):
So before we wrap it up today,let's quickly recap the key
takeaways.
Number one, contributing 35years to your earnings record
ensures you get the most out ofyour social security
calculation.
And then number two.
You may want to wait to collect.
If you're in good health andcan't afford to wait, delaying
benefits can make a bigdifference.
(10:21):
Then number three, leveragespousal and survivor benefits.
Understand that you can receivebenefits based on your spouse's
or ex-spouse's earnings recordat 50% or a hundred percent
after your spouse or ex-spousehas passed.
And then four, integrate socialsecurity with your overall
retirement strategy.
(10:42):
I can't stress this enough.
Always consider your socialsecurity in the context of your
broader financial picture,including investments, tax
planning, and your overallretirement income strategy.
And then five.
Don't stress if you earn morethan expected and already have
started Social Security Day 62.
(11:03):
Social Security will credit youfor when you hit full retirement
age.
You'll also have a one-timeoption to repay the benefits
within the first 12 months andwithdraw your application as if
you never started.
Remember, social security is acritical piece of your
retirement puzzle, but itdoesn't stand alone.
Make sure you consider italongside your portfolio
withdrawals, tax strategies, andother retirement income sources.
(11:27):
Please consult with a trustedfinancial planner that uses
financial planning software whenit comes to deciding on when
it's best for you to startSocial Security, a retirement
planner and financial planningsoftware can make a world of
difference in creating astrategy that's best for you.
I hope you enjoyed today'sdiscussion on social security.
(11:49):
If you did, please subscribe andhit the thumbs up button.
I'd love to hear your thoughts.
Drop a comment below and let meknow what you think.
If you're looking for afinancial advisor, I'd be
honored to work with you.
Please click the link in thedescription to schedule a free
no obligation call.
Also visit our website for moreinformation about my firm, our
(12:11):
fees, and how we can help youreach your financial goals.
Thank you and have a great day.
Welcome.
Today we're going to explorefive simple ways to increase our
social security benefits.
But before we get started, I'mGeorge Jameson, certified
financial planner and founder ofCapital Wealth Group, located in
Columbia, South Carolina.
Social security is one of thecornerstones of retirement
planning, yet many of us aren'tcompletely sure how it works or
(00:21):
how we can maximize thebenefits.
Today I'll walk you through howSocial Security is funded.
The unique ways it calculatesyour benefits.
And most importantly, share fiveactionable strategies that may
help boost your monthly check inretirement.
So first, let's talk about howSocial security is funded.
It is funded by payroll taxes,6.2% from you, and 6.2% from
(00:46):
your employer applied only toincome up to a yearly cap of
176,100 for 2025.
This combined, 12.4% tax is whatbuilds your future benefits.
Next, how is your SocialSecurity benefits calculated?
The formula is a littlecomplex,, but here is what
(01:06):
really matters.
First, your past income yearsare indexed to reflect today's
dollars.
And second Social SecurityAdministration averages your
highest.
35 years of earnings.
If you have less than 35 years,zeros fill in the gaps lowering
(01:27):
your benefits.
And then third, those earningsare divided by 420, which are
the number of months in 35 yearsto get your average indexed
monthly earnings, also calledaim A IME.
And fourth, the Social SecurityAdministration takes your
(01:48):
average index monthly earningsand runs it through a formula
using what's called bend pointsthat favor lower income earners
to determine your primaryinsurance amount called P-I-A-.
PIA is actually just yourestimated monthly benefits at
your full retirement age, whichis age 67, if you're born in
(02:12):
1960 or later.
So what's most important foryou?
Keep an eye on your earningsrecord.
Log into your My social securityaccount.
At ssa.gov to check that yourearnings for each year are
accurate.
You can also see yourpersonalized estimated benefits.
Now we'll discuss understandingretirement ages and benefit
(02:35):
adjustments at your fullretirement age, which is age 67.
For most of us, you'll get ahundred percent of your primary
insurance amount.
However, as most of you know,you can start collecting as
early as age 62 or delaybenefits all the way up to age
70.
Okay, and here's why thismatters.
(02:58):
Starting your benefits beforeyour full retirement age means a
permanent reduction in yourmonthly payments.
For instance, at age 62, youreceive about 70% of what you
would get at your fullretirement age.
That's a big reduction.
At age 63, it's roughly 75%.
(03:20):
By age 64, you get around 80%,and at age 65, the benefit
increases to about 86%.
And at age 66 it's about 93.
And then finally, again, at yourfull retirement age, 67, you
receive a hundred percent ofyour calculated benefits.
Of course, you can also delaybenefits up to age 70.
(03:44):
Which will boost your socialsecurity benefits by 8% per
year.
So at age 70, you would getabout 124%.
This can be a powerful incentiveif you're in good health and
expect to live a long act ofretirement, but it's definitely
not the right choice foreveryone.
(04:05):
Please keep in mind that socialsecurity is a very
individualized decision.
And when to start will depend onmany factors.
You should not decide on when totake Social Security in
isolation.
The decision should be part of awell thought out retirement
plan.
(04:26):
Now that we have a handle on howsocial security works.
Let's dive in to the five simpleways you can potentially
increase your benefits.
So number one, work a full 35years.
It may sound obvious, but one ofthe best ways to boost your
benefit is to work a full 35years, even if it's part-time.
(04:50):
Social security calculates yourbenefits based on your highest
35 years, like we said, and ifyou have years with no income,
those years will drag down youraverage because it will show
zeros in front of those years.
So even part-time work is betterthan nothing.
And filling those gaps can makea big difference and number two,
(05:13):
wait longer to collect benefits.
it might seem smart to startyour benefits at 62.
A lot of people do and sometimesit is smart.
But you'll only get, again, 70%of your full benefit.
If you're tired of your highstress job and you're at the age
62, consider a less stressfuljob, or even a part-time gig and
(05:40):
wait until at least age 65,where you'll get almost 87% of
your full benefit versus 70% at62.
Of course, if you're healthy,continue that part-time gig and
wait until at least 67, whichcan really pay off.
And then number three,understand spousal and survivor
(06:02):
benefits.
If you're married or evendivorced after a long marriage,
10 years or longer to be exact,you might get extra benefits.
What do I mean?
You can choose to receive yourown benefits or up to 50% of
your spouse's or evenex-spouse's benefits, whichever
is higher.
(06:23):
Plus, if your spouse orex-spouse dies before you.
The surviving partner can get100% of their benefit at full
retirement age.
This can really help protectyour financial future.
And then number four, coordinatesocial security with your
overall retirement strategy.
This is a big one.
(06:43):
Your social security decisionshouldn't be made in isolation.
It's very important to considerhow your social security
benefits interact with othersources of income, such as
withdrawals from your retirementportfolio.
Possibly pensions and even taxconsiderations If you're married
and one spouse makes a lot morethan the other, the one who
(07:04):
makes the most may want to delaysocial security benefits.
So if he or she were to passfirst, the spouse who made less
would be able to get a hundredpercent of their other spouse's
social security.
And then number five, if youstart your social security at
age 62, planning to only make upto the maximum allowed, but end
(07:27):
up making more or have theopportunity to do so.
Please don't worry you haveoptions.
Just to clarify, in 2025 beforeyou reach your full retirement
age, for every$2 you earn over23,400, your benefit drops by$1.
Then in your full retirement ageyear, every$3 over 62,160 cuts
(07:54):
your benefits by$1.
But once you hit full retirementage, you can make as much money
as you want without affectingyour social security benefits.
So now that you got the figures,let's say you retired from your
stressful tech job at 62 andstarted Social Security because
you wanted your investments togrow and you decided to become a
(08:16):
realtor and sell homes part-timefor several years.
You thought that you could sella couple homes to make the
23,400 and then collect yoursocial security at age 62, but
you ended up loving it and doingvery well and making six
figures.
,so here's three ways to handlethis situation.
(08:37):
So first, keep getting thebenefits.
You'll likely still get somemoney now, and the money that
was held back because you wentover the limit will be
recalculated at your fullretirement age.
And then second, you couldactually withdraw your claim if
it's been less than 12 months.
(08:58):
And you're just killing it inreal estate.
You can pay back the benefitsyou got and it will be like
you've never started yourbenefits at all.
You then start social securitylater on at full retirement age
or whatever age you decide witha higher monthly benefit.
But keep in mind, you can onlydo this once And third.
(09:19):
You can suspend benefits at yourfull retirement age.
If you're now 67 and still enjoyselling real estate, still
making six figures and still ingreat health, you can pause your
benefits to earn extra crediteach month, which will boost
your monthly check later on.
(09:39):
So what's the bottom line?
If you started Social securityat 62, which a lot of people do,
and you're still working, don'tstress about how much you can
make.
If you earn more than youexpected to, social Security
will credit you for it when youhit your full retirement age.
So keep doing what you love andenjoy your success.
(10:00):
So before we wrap it up today,let's quickly recap the key
takeaways.
Number one, contributing 35years to your earnings record
ensures you get the most out ofyour social security
calculation.
And then number two.
You may want to wait to collect.
If you're in good health andcan't afford to wait, delaying
benefits can make a bigdifference.
(10:21):
Then number three, leveragespousal and survivor benefits.
Understand that you can receivebenefits based on your spouse's
or ex-spouse's earnings recordat 50% or a hundred percent
after your spouse or ex-spousehas passed.
And then four, integrate socialsecurity with your overall
retirement strategy.
(10:42):
I can't stress this enough.
Always consider your socialsecurity in the context of your
broader financial picture,including investments, tax
planning, and your overallretirement income strategy.
And then five.
Don't stress if you earn morethan expected and already have
started Social Security Day 62.
(11:03):
Social Security will credit youfor when you hit full retirement
age.
You'll also have a one-timeoption to repay the benefits
within the first 12 months andwithdraw your application as if
you never started.
Remember, social security is acritical piece of your
retirement puzzle, but itdoesn't stand alone.
Make sure you consider italongside your portfolio
withdrawals, tax strategies, andother retirement income sources.
(11:27):
Please consult with a trustedfinancial planner that uses
financial planning software whenit comes to deciding on when
it's best for you to startSocial Security, a retirement
planner and financial planningsoftware can make a world of
difference in creating astrategy that's best for you.
I hope you enjoyed today'sdiscussion on social security.
(11:49):
If you did, please subscribe andhit the thumbs up button.
I'd love to hear your thoughts.
Drop a comment below and let meknow what you think.
If you're looking for afinancial advisor, I'd be
honored to work with you.
Please click the link in thedescription to schedule a free
no obligation call.
Also visit our website for moreinformation about my firm, our
(12:11):
fees, and how we can help youreach your financial goals.
Thank you and have a great day.
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