Near Retirement? Make These 5 Moves Now To Maximize Social Security
Written by
Gabrielle Olya
Edited by
Levi Leidy
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If you’re nearing retirement, the decisions you make today could significantly impact how much Social Security income you receive for the rest of your life. With the right strategies, you can boost your benefits and reduce your tax burden.
If you want to maximize your Social Security benefits, these are the moves you need to make now.
Delay Claiming Benefits Until Age 70 If You Can
One of the most impactful decisions you will make is when you begin to collect your Social Security benefits.
“Each year you wait to claim past your full retirement age up to age 70 increases your benefit by roughly 8%,” said Steve Harrell, director of retirement solutions at Wright-Patt Credit Union. “For someone with a longer life expectancy or other income sources to draw from, waiting can significantly boost lifetime benefits.”
Early claiming results in a permanent reduction of up to 30% of your full benefit.
Coordinate Spousal Benefits for Maximum Payout
Couples can increase total household benefits by strategically timing when each person claims.
“For example, one spouse may begin collecting earlier, while the other delays to earn delayed retirement credits,” Harrell said.
Pay Off Debt and Improve Cash Flow Before Retiring
Paying down high-interest debt or refinancing major expenses can make it easier to delay claiming Social Security and reduce financial stress once retired, Harrell noted.
Work at Least 35 Years To Avoid Benefit Reductions
When planning when to retire, ensure you have 35 years in the workforce to avoid reductions to your Social Security benefits.
“If you work fewer than 35 years, the Social Security Administration will enter zeros for your non-working years when calculating your average earnings, significantly lowering your benefit,” Harrell said.
Use Strategies To Reduce Benefit Taxation
Use tax-planning strategies to reduce the taxes you pay on your benefits.
“Strategies like converting funds from a traditional IRA to a Roth IRA can help manage your taxable income in retirement, potentially reducing or eliminating the tax on your Social Security benefits,” Harrell said.
You should also be mindful of the provisional income threshold.
“Depending on your other income in retirement, your Social Security benefits may be taxable,” Harrell said. “For 2025, if your provisional income is above certain thresholds — $23,000 for a single filer, $32,000 for a couple — up to 50% of your benefits may be taxable.”
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Wright-Patt Credit Union® and WPCU® Retirement Solutions are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using WPCU Retirement Solutions, and may also be employees of Wright-Patt Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Wright-Patt Credit Union or WPCU Retirement Solutions. Securities and insurance offered through LPL or its affiliates are: Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed | Not Credit Union Deposits or Obligations | May Lose Value
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