Social Security is not a one size fits all proposition. Putting some strategic thought into when you take benefits and understanding that certain life events open doors to adjust your Social Security benefit is critical to getting the most out of the program.

Here are five common scenarios and the strategies to make sure you are getting the most out of the program.

Scenario 1: You have turned 62 and are eligible now to start collecting Social Security but should you start now or wait until you are older?

Strategy 1: If a person starts collecting at age 62, they would be locking in the lowest monthly benefit they have earned for the rest of their life. Evey year that you wait until reaching 70 the monthly benefit increases. A person who could start collecting today at 62 vs if they had waited and started collecting today at 70 would receive a monthly benefit of almost twice as much.

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Scenario 2: You have elected to start your benefit before reaching full retirement age and realize that you have locked in a much lower monthly benefit than what you could have received if you had waited to full retirement age of 67 or even up to age 70.

Strategy 2: If a person starts collecting at age 62, they might only be eligible for 70% of the amount they earned. If they wait until reaching “full retirement age” (which is 67 for anyone born in 1960 or after), they will receive 100% of their benefit. If they delay collecting past full retirement age, they actually earn credits that will increase their benefit by 8% each year they wait until they max out at age 70. So, if a person files to start collecting their benefit and then changes their mind to wait longer, they do have a chance to withdraw their claim within a 12-month window. They will need to re-pay what they received, including any spousal benefits and then they could wait until a later date to re-start their Social Security benefits at a higher amount.

Scenario 3: You are married and ready to start collecting Social Security.

Strategy 3: For a married couple, once the higher earning spouse starts to take their benefit the other can elect to take a “spousal benefit” which can be up to 50% at full retirement age of the higher benefit amount.

Scenario 4: You are divorced and ready to start collecting Social Security.

Strategy 4: In the case of divorce, an ex-spouse can collect up to 50% of the other’s benefit if they are 62 or older, were married at least 10 years, and are single. If the ex-spouse has died, they can still collect a survivor benefit under the same rules. The ex-spouse can start collecting the benefit whether the other has started collecting their benefit or not if they have been divorced at least two years.

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Scenario 5: Your spouse is deceased, and you are ready to start collecting Social Security.

Strategy 5: A surviving spouse can collect up to 100% of the deceased’s benefit if they start at full retirement age, but if they start collecting sooner, they will receive a reduced amount between 71%-99%. If they remarry before age 60 they cannot collect, but if after age 60 they can collect. If there are surviving children aged 18 or younger, they are entitled to 75% of the full benefit amount, and the benefit will continue until age 19 if the child is a fulltime student or age 22 if the child is disabled. But there is a limit to how much Social Security will pay to any one household of 180% of the deceased’s benefit amount.

Scenario 6: You are earning income while collecting Social Security.

Strategy 6: Many retirees overlook how Social Security enforces earnings limits and imposes federal income taxes on benefits. Exceeding these thresholds can reduce monthly payments and increase tax liability, impacting overall retirement income. Social Security enforces specific earnings limits and tax rules that can affect your benefits if you're working while receiving them. If you exceed the annual earned income limit, you can be subject to taxes being deducted from up to 85% of your benefits.

Final Advice

Maximizing Social Security benefits requires careful planning, including choosing the right age to start, coordinating with a spouse, and managing tax implications. Making informed decisions can mean the difference of hundreds or even thousands of dollars each month, with long-term financial consequences.

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Chris Orestis, Retirement Genius is a nationally recognized senior care advocate and expert in retirement, long-term care and specialty senior living funding solutions. The author of two books, numerous published papers and articles, and a frequent industry speaker; he is the innovator that brought the LTC Life Settlement into the market over a decade ago.