5 Social Security Tips for New Retirees in 2025
Written by
Yaël Bizouati-Kennedy
Edited by
Chris Cluff
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If you are retiring in 2025, you are not alone. This year marked the so-called “Peak 65 Zone,” the biggest wave of Americans turning 65. More than 4.1 million Americans will turn 65 each year through 2027, according to the Retirement Income Institute.
Transitioning to a fixed income is no small feat and can be quite challenging. In turn, understanding Social Security benefits and navigating their multiple intricacies is crucial for this cohort as they enter this new phase.
“How you manage your Social Security benefits can impact your finances for the rest of your life, so it’s important you create a thoughtful plan for managing them,” said Erika Kullberg, attorney, personal finance expert and founder of Erika.com.
Here are some Social Security tips for new retirees in 2025, according to experts.
Timing Is Everything
Many experts note that one of the most important decisions you’ll make in retirement is when to start claiming your Social Security benefits.
Steve Sexton, CEO of Sexton Advisory Group, stressed that while you can begin as early as age 62, he always recommends considering the benefits of waiting.
In fact, if you delay your claim until your full retirement age (FRA) or even up to age 70, your benefits can increase substantially — by up to 8% per year past FRA due to delayed retirement credits, he said.
“For many, this can mean a much larger check each month for the rest of your life,” Sexton added. “For those retiring in 2025, your FRA is likely around 66 or 67, depending on your birth year.”
In turn, claiming before this age will reduce your monthly benefits, potentially by as much as 30%.
“The extra income from waiting can be a game changer, especially as we all live longer and need our money to stretch further,” he added.
However, it’s also important to keep in mind that every scenario is different, some experts noted.
“Just because your neighbor claimed at 70 and you claimed at 67 doesn’t mean you’re wrong,” said Dave Ragan, CFP, vice president of financial planning at Grunden Financial Advisory. “It has to do with marital status, health status, working status, tax status, financial status and economic status.”
Keep an Eye on COLA
Social Security benefits are adjusted each year based on inflation through a cost-of-living adjustment (COLA).
In 2024, there was a 3.2% increase, according to the Social Security Administration.
“For 2025, we’re expecting a more modest COLA due to slower inflation,” Sexton said. “This means you might see a smaller increase in your benefits compared to previous years.”
He said it’s crucial to keep this in mind as you budget for retirement, so plan conservatively, and don’t rely on large COLA increases to keep pace with your expenses.
Another point is that many retirees underestimate the power of the COLA provided by Social Security.
For instance, by starting benefits early, you limit the impact of future COLA as any increase will apply to a lower monthly amount, noted Dana Anspach, CFP, founder and CEO of Sensible Money.
“Delaying the start date of benefits gives you a larger starting base,” she said. “Each increase now has more horsepower. This provides an effective way to build inflation protection into your retirement plan.”
Coordinating Social Security With Other Retirement Income
Another tip is to keep in mind that your Social Security is just one piece of the retirement puzzle.
In turn, coordinating it with withdrawals from your 401(k), IRA or other savings can help minimize taxes and maximize your income, Sexton said.
“Strategic planning here can help ensure your money lasts as long as you do,” he said. “And if you’re married, the strategy becomes even more important. Coordinating when you and your spouse claim benefits can lead to a significantly higher household income over time.”
For example, he said one spouse might claim benefits earlier, while the other delays to increase their monthly check.
“This balance can help cover current expenses while ensuring a larger income down the road,” he added.
If You’re Married, Think About Longevity
Anspach also noted that married couples must look at joint longevity to make an optimal claiming decision.
According to her, too many calculate a break-even age as if they were single.
“For couples, the higher benefit amount becomes the survivor benefit for the widow or widower, making it crucial to examine benefits jointly,” she said.
In turn, typically, it makes sense to have the high-earning spouse start benefits later to lock in that higher payment for a joint life payout, she noted.
“However, age differences can impact this decision,” Anspach said, “so couples should use claiming software to run the numbers before either file for benefits.”
Stay Updated on Recent Changes
Finally, Sexton also underscored the importance of staying informed about recent changes to Social Security and retirement laws.
“For example, the FRA is gradually increasing,” he said, “meaning you’ll need to wait longer to receive your full benefits.”
In addition, recent legislation, such as the SECURE Act, has changed the landscape for retirement accounts, affecting how you might want to integrate Social Security into your overall plan, he added.
“Remember, retirement is a marathon, not a sprint,” he said. “Taking the time to plan now can lead to a more comfortable and secure retirement later on.”
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