You might have seen those viral articles promising a mysterious multi-thousand-dollar Social Security "bonus," but are they actually legit? On the show this week, I separate fact from fiction, debunking the myths and sharing seven actionable strategies to help you get the most out of your Social Security over your lifetime.

Whether you're curious about how working longer, delaying your benefits, checking your earnings record, or understanding tax implications can impact your retirement paycheck, this episode is packed with valuable tips to help you make sure you're not leaving money on the table.

You will want to hear this episode if you are interested in...

• [00:00] Retirement Planning Misconceptions Explained.
• [03:25] Filling in or replacing "zero" or low-earning years boosts benefits.
• [04:26] Reasons for and against early collection.
• [06:48] Repay benefits within one year of starting to "reset" your claim.
• [08:15] Eligibility requirements for spousal benefits.
• [12:28] How to check your Social Security earnings.
• [13:00] Strategies to delay taxable distributions and reduce Social Security taxation.

Debunking the Social Security "Bonus" Myth

Many retirees have seen headlines promising a massive Social Security "bonus" that most people don't collect. Let's be real, this so-called "bonus" isn't some sort of secret benefit; it's a reference to the cumulative value you could gain over your lifetime by paying a little attention to your Social Security strategy and reducing your tax liability. In other words, there's no one-time check or hidden program, just savvy planning that can add up to tens of thousands more in your pocket.

1. Work Longer, Maximize 35 Years of Earnings

The Social Security Administration calculates your benefit using the highest 35 years of your working life. If you retire with fewer than 35 years of work, the missing years count as zero, lowering your benefit. Even for those with a full 35-year history, additional years of higher earnings (often later in your career) can replace lower-earning years, bumping up your monthly check. Working a little longer not only increases your benefit but may also put you in a better position for retirement overall.

2. Delay Claiming Benefits

While you are eligible to start at age 62, waiting until your full retirement age (typically 66 or 67), or even delaying to age 70, can significantly increase your monthly benefit. For every year you wait past full retirement age (up to age 70), you receive an 8% credit, on top of any cost-of-living adjustments. There are some exceptions where it may make sense to claim early, such as serious health issues or unique family situations.

3. Unwind an Early Claim with Repayment

If you've already claimed Social Security but then realize you made a mistake, there is a potential do-over option. If you started benefits within the past year, you can repay the benefits received (without interest) and reset your claiming strategy to earn a higher benefit later. This is a once-in-a-lifetime opportunity and includes repayment of any Medicare premiums withheld, so be sure this move fits your broader financial plan.

4. Don't Miss Out on Spousal and Survivor Benefits

If you're married, you can claim a spousal benefit up to 50% of your spouse's benefit at your full retirement age. This strategy can be a huge game-changer for non-working or lower-earning spouses. When a spouse passes away, the survivor can step up to the higher of the two benefits, which is why it's important to maximize the higher earner's benefit for long-term security.

5. Check Your Social Security Earnings Statement Regularly

Mistakes happen, even with Social Security's generally high record-keeping accuracy. Reviewing your annual earnings statement ensures all your income is being counted, and thus, your benefit is maximized. Errors not caught early can seriously reduce your benefit down the road.

6. Be Tax-Smart About Social Security Benefits

By smartly timing IRA distributions, capital gains, and part-time work, you can potentially reduce or even eliminate the tax owed on your benefits for several years. For couples with a combined income under $32,000, none of the benefit is taxable, while at higher incomes, up to 85% can be taxed. Knowing these thresholds is key to tax-efficient retirement income planning.

7. Get Advice When Needed

Social Security may be just one piece of your retirement puzzle, but it's a critical one. Consulting with a financial advisor can help you coordinate claiming strategies, minimize taxes, and make the right decisions for your unique situation.

While there's no hidden "Social Security bonus" waiting to be claimed, a thoughtful approach to your Social Security strategy can result in thousands, even tens of thousands, of dollars more in your retirement years.

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Download my entire book for FREE

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