Social Security Tips for Retirees in 2025

Thinking of retiring next year and not sure how or when to claim your Social Security benefits? With over 20 years of personal finance and retirement planning experience as a financial consultant and CEO of Sexton Advisory Group in San Diego, CA, here are some key considerations I urge you to think about to safeguard your benefits in your golden years.

Timing is Everything

One of the most important decisions you’ll make in retirement is when to start claiming your?Social?Security?benefits. While you can begin as early as age 62, I always recommend considering the benefits of waiting. 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. For many, this can mean a much larger check each month for the rest of your life.?

For those retiring in 2025, your FRA is likely around 66 or 67, depending on your birth year. 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.

Keep an Eye on Cost-of-Living Adjustments (COLA)

Social?Security?benefits are adjusted each year based on inflation through what’s called a Cost-of-Living Adjustment (COLA). For 2025, we’re expecting a more modest COLA due to slower inflation. This means you might see a smaller increase in your benefits compared to previous years. 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.

Coordinating?Social?Security?with Other Retirement Income

Your?Social?Security?is just one piece of the retirement puzzle. Coordinating it with withdrawals from your 401(k), IRA, or other savings can help minimize taxes and maximize your income. Strategic planning here can help ensure your money lasts as long as you do. 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, 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.

Stay Updated on Recent Changes

It’s also important to stay informed about recent changes to?Social?Security?and retirement laws. For example, the FRA is gradually increasing, meaning you’ll need to wait longer to receive your full benefits. Recent legislation, such as the SECURE Act, has changed the landscape for retirement accounts, affecting how you might want to integrate?SocialSecurity?into your overall plan.? Remember, retirement is a marathon, not a sprint. Taking the time to plan now can lead to a more comfortable and secure retirement later on.