Social Security Planning: 20 Years of Insights Revealed

By Martin J. Swiecki, CFP®, CLU

Social Security planning is an important part of planning for a comfortable retirement, but its rules can be complicated. Unfortunately, many people lose out on benefits because they don’t understand how the system works.

Knowing when to claim, how working longer may impact your payments, and what options are available for spouses and survivors can affect your financial future. Such strategies could mean the difference between getting by and enjoying true financial stability in retirement.

This guide explains how to take advantage of them.

Optimal Claiming Strategies Based on Your Unique Situation

The timing of your Social Security benefits can have a major influence on your long-term finances.

For example, if you receive benefits at 62, you may get smaller monthly checks, but you’ll generally be getting more of them over time. On the other hand, waiting until 70 would give you a higher monthly amount, thanks to delayed retirement credits, though you'd typically collect payments for fewer years.

For those who need Social Security right away to pay for basic expenses, it might make sense to claim benefits early. But if you have savings or additional sources of income, waiting could lead to larger monthly payments down the road; you may just have to set aside some money to manage the waiting period.

How Working in Retirement Affects Social Security Planning

You can work while collecting Social Security. However, your benefits may be reduced if you claim them before full retirement age (FRA), depending on your earnings.

If you’re below full retirement age for the entire year, the Social Security Administration (SSA) normally deducts $1 in benefits for every $2 of earnings you claim above $23,400. So, if you earn $25,400 (that’s $2,000 above the limit), the SSA would reduce your benefits by $1,000.

A larger limit kicks in once you get to your FRA, which means you can earn up to $62,160 before anything gets deducted, and only $1 is withheld per $3 earned over that limit.

That said, not all income is subject to these limits. The SSA counts only wages from a job or your own business, including bonuses and commissions. Pensions, investment income, and veterans’ benefits typically don’t count. This distinction is particularly important if you’re considering part-time work or freelance projects.

Maximizing Spousal and Survivor Benefits

Spousal benefits are a crucial (though often overlooked) part of Social Security planning. If you’re married, you may be eligible for as much as half of your spouse’s retirement benefit. But the sooner you claim, the less you’re likely to get. Waiting until full retirement age means you get the maximum benefit.

If you also have your own work history, Social Security typically compares the two benefits and pays whichever is higher.

Divorced individuals aren’t excluded either. As long as your marriage lasted at least 10 years, and you haven’t since remarried, you might be entitled to claim spousal benefits based on your ex-spouse’s work record. This can be particularly useful if you took time off from work to care for children or relatives and have gaps in your own earnings history.

For surviving spouses, timing can make a big difference. With plans based on your individual circumstances, a savvy strategy may be to alternate benefits as your situation changes. For example, a widow or widower might take survivor benefits first and switch to their own retirement benefit later if it grows larger. 

These sorts of moves require strategic Social Security planning, but they can help you take full advantage of your monthly payments.

Build a Stronger Financial Tomorrow WIth Social Security Planning

Life rarely moves in straight lines—job changes, family demands, and retirement dreams can all determine your financial path. The Valletta Group has walked alongside individuals and families through these twists and turns for more than 25 years, providing customized wealth management plans and Social Security planning that align with their changing goals.

Now might be the time to reassess your path. To schedule a meeting, call (248) 720-1780 or email mswiecki@vallettagroup.com.

About Martin

Martin Swiecki is the Founder and CEO at The Valletta Group, a wealth management firm based in Northville, Michigan, with a quarter century of experience helping individuals and their families navigate life’s transitions. Working closely with business owners and entrepreneurs in the medical, legal, and automotive industries as they pursue their aspirations, Martin leads a team focused on delivering tailored capabilities and services. He loves making a difference in clients’ lives by helping them reach their goals with proper planning and providing comfort and peace that someone is looking out for them.

Since starting his career in 2003, Martin has been focused on listening to his clients, seeking to gain deep insight into who they are and aspire to be—apart from their investments. He founded The Valletta Group to pursue what he believes is “A Better Way” to serve his clients.

The name of the firm, Valletta, holds special significance. Valletta is the capital city of Malta, a small island off the coast of Sicily. When Martin envisioned creating his own firm, he struggled with finding the right name. He didn’t want to use his own name or anything generic. His mother, who moved from Malta to the U.S. in her early 20s, inspired the name. Growing up, Martin and his family would visit Malta every other summer, maintaining a close connection with their heritage. In 2019, Martin took his wife, Jessica, and their two young children, Evelyn and George, to Malta, where they stayed in Valletta. It was during this trip that his wife suggested naming the firm The Valletta Group. The name not only honors Martin’s mother’s perseverance in starting a new life in the U.S. but also serves as a meaningful family tribute and a conversation starter.

Martin holds a bachelor’s degree in engineering graphics and design from Western Michigan University. He earned his CERTIFIED FINANCIAL PLANNER®, CFP® designation in 2011 and became a Chartered Life Underwriter (CLU) in 2006. Outside of work, Martin enjoys spending time with his family, pursuing outdoor activities such as golfing, boating, and fishing. To learn more about Martin, connect with him on LinkedIn.