When Two Advisors Are Better Than One: Coordinating Wealth Strategy Across Specialists

Clients in St. Louis often find that this local connection creates a true partnership. A St. Louis financial advisor like Tim Schulze builds trust by listening, planning, and following through over time.

The years just before retirement are typically your last chance to "supercharge" your 401(k). A proactive plan designed to help maximize 401(k) before retirement can make a big difference between a good retirement and a great one.

Today’s beneficiary planning doesn’t end with naming your spouse and children. Tax laws and IRS distribution rules have changed. Modern planning considers trusts, structured beneficiary hierarchies, and tax-aware strategies.

The right partnership provides more than portfolio management. It provides clarity, reduces stress, and gives you the confidence to make big life decisions. When you understand how to choose a financial advisor based on partnership, not just performance, you build the foundation for true, lasting security.

When Mark decided to retire at 60, he thought he was ready. He had saved for years, paid off his home, and mapped out a plan for traveling with his wife. But a few months after leaving his job, something unexpected happened. The excitement faded. Without the meetings, the deadlines, or the familiar rhythm of the workweek, he started to feel lost. That quiet moment, when the reality of retirement settles in, is something many people never plan for. More people are leaving work earlier than ever, sometimes by choice and sometimes because life nudges them in that direction. Whether it is a company buyout, a health concern, or simply a longing for more time, early retirement brings both opportunity and uncertainty. At Pioneer Wealth Management, we often meet clients who are financially prepared to retire but emotionally unsure about what comes next. That is where we believe true planning begins, not just with numbers but with what those numbers make possible. Retiring Early The idea of early retirement has grown from a dream into a genuine movement. Some people want to spend more time with family. Others have reached a point where work no longer feels fulfilling. The pandemic accelerated this shift by showing how fragile time can be and how important it is to live life on one’s own terms. A study by Fidelity also shows that people often underestimate how long retirement might last. Someone who retires at 60 could easily live another 30 years or more. That means early retirement is not the end of one chapter but the beginning of another that can last just as long as a career. For advisors, this trend is both exciting and challenging. It invites deeper conversations about life goals, purpose, and what financial freedom really means. The Difference Between Financial and Emotional Readiness Money often feels like the biggest factor in early retirement decisions. But being financially ready and emotionally ready are two very different things. We have worked with clients who have more than enough saved but still struggle with the transition. They miss their routines. They miss feeling needed. Work often provides a sense of identity, and when that disappears, it can leave a void. That is why we always encourage people to think about what their days will look like once they stop working. What will get you out of bed in the morning? How will you stay connected with people? What will bring you joy? We sometimes suggest a “trial run.” Take a few weeks off and live as if you are retired. Notice how it feels. You might discover areas that need a little more planning, both financially and emotionally. Finding Purpose Beyond the Paycheck When the initial glow of retirement fades, many people realize they miss having a purpose . After decades of contributing, leading, or creating, it can feel strange not to have clear goals. This is what we call the “purpose gap.” Fortunately, that purpose can take many forms. It might mean mentoring young professionals, volunteering, taking care of family, or pursuing creative hobbies that were put aside during busy working years. It does not have to be grand. What matters is that it gives you energy and meaning. At Pioneer Wealth Management, we talk openly about this side of retirement. We believe that financial health and emotional well-being are connected. When clients know what matters most to them, we can design financial plans to help support those values. A purposeful retirement does not happen by accident. It takes reflection and honesty, and sometimes it takes guidance from someone who can ask the right questions. Building a New Routine and Lifestyle Time changes shape after retirement. Without the structure of work, it can feel like all the days blur together. Some people overfill their calendars with activities, while others struggle with too much unstructured time. We often suggest that clients think about balance. Keep a few anchors in the week, maybe a fitness class, a volunteer shift, or lunch with friends. Routine brings rhythm and helps avoid the “what day is it?” feeling that some new retirees experience. Social connection is especially important. When work relationships fade, loneliness can creep in. Finding new circles of community, such as book clubs, hobby groups, or travel companions, keeps life interesting and joyful. Even small routines matter. Whether it is morning coffee on the porch or a daily walk, these moments give retirement days a steady heartbeat. Financial Planning for an Early Retirement Of course, emotional readiness does not replace the need for sound financial strategy. Retiring early often means navigating a few extra financial hurdles. Health insurance before Medicare. This is one of the biggest concerns for many people under 65. You may need to explore options such as private coverage, COBRA, or Affordable Care Act plans. Planning for healthcare costs upfront helps protect long-term savings. Smart withdrawal strategies. The order in which you draw money from different accounts can make a big difference in how long your portfolio lasts. Coordinating withdrawals from taxable, tax-deferred, and tax-free accounts helps minimize taxes and extend the life of your savings. Investing for the long haul. Early retirees might spend 30 or more years in retirement, so portfolios need to support both growth and income. A mix of investments that balances stability with opportunity can help sustain your lifestyle through decades of change. Staying flexible. Life rarely goes exactly as planned. Markets shift, family needs evolve, and priorities change. We build flexibility into every plan so clients can adjust when life does. The best plans are living documents. They adapt, just like the people they serve. The Advisor’s Role in a Holistic Retirement Financial advisors used to focus mostly on numbers. Today, many effective advisors help clients connect money to meaning. We are part strategist, part coach, and sometimes part sounding board. Our role is to ask questions that clients may not have considered. How do you picture your days? What worries you about this change? What kind of legacy do you want to leave? When these questions guide the conversation, financial planning becomes more than just math. It becomes a roadmap for life after work. At Pioneer Wealth Management, we believe retirement should be about thriving, not just surviving. Our clients trust us to help them create plans that honor both their wealth and their well-being. A New Chapter Worth Planning For Early retirement is not just about having enough money. It is about having enough clarity, confidence, and courage to build a life that feels complete. For some, that means travel or time with grandchildren. For others, it means starting something entirely new. Whatever the dream looks like, the key is to plan ahead, financially and emotionally, so that retirement feels rewarding and not overwhelming. If you are thinking about stepping away from work sooner than expected, you do not have to figure it all out alone. At Pioneer Wealth Management, we help clients prepare for every side of retirement. Let us talk about your goals, your concerns, and your vision for what comes next. Visit pioneerwealthmgmt.com or call (314) 619-1283 to schedule a consultation. Together, we can create a plan that helps you move confidently into this next chapter of life with purpose, peace of mind, and financial security. Investment advisory services offered through CreativeOne Wealth, LLC, a registered investment adviser. CreativeOne Wealth and Pioneer Wealth Management are not affiliated companies. We are not affiliated with or endorsed by any government agency, and do not provide tax or legal advice.This material has been prepared for informational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Investing involves risk, including the loss of principal. No Investment strategy can guarantee a profit or protect against loss. Licensed Insurance Professional. Annuity products are backed by the financial strength and claims-paying ability of the issuing insurance company. Past performance may not be used to predict future results. [footnote: Hypothetical individual shown for illustrative purposes only]

Healthcare is often one of the biggest and most persistent expenses in retirement. Even if you enter retirement healthy, costs can add up fast from insurance premiums, out-of-pocket medical bills, prescriptions and potential long-term care needs. Many retirees underestimate these expenses, especially before they are eligible for Medicare. This can put a strain on retirement savings if there is no plan in place. A thoughtful approach to healthcare planning can make a big difference in keeping you financially stable and at peace. By knowing where costs might arise and how to pay for them, you can plan for the future with confidence. In this article, we’ll look at all the healthcare costs a retiree can expect before, and after, Medicare. Keep reading to learn how to plan adequately for your retirement health expenses. Why Healthcare Is Often a Top Retirement Expense Healthcare is often a top retirement expense. According to Fidelity’s projections , an individual retiring at 65 in 2025 may need an estimated $172,500, up 5% from 2023, to cover medical expenses in retirement. This includes premiums, deductibles and out-of-pocket costs but does not include long-term care, which is often an additional and big expense. These costs can be higher for those retiring before Medicare eligibility. Without planning, early retirees could face higher premiums for private insurance or marketplace plans, especially if they have preexisting conditions or need more comprehensive coverage.  Remember medical inflation outpaces general inflation so healthcare costs may continue to rise faster than most other expenses. What Retirees Will Pay Before Medicare One of the biggest gaps in retirement healthcare planning is the period before Medicare kicks in at age 65. Retirees who leave the workforce earlier need to get their other coverage during these years. Options may include continuing employer-sponsored coverage through COBRA, buying an individual plan on the health insurance marketplace or exploring retirement health insurance options from a former employer. For couples that don’t retire at the same time, another potential solution is coverage under the working spouse’s employer-sponsored health plan. This can often provide more affordable and comprehensive benefits compared to individual plans. Each of these options has different costs and coverage details, so careful evaluation is key. Early retirees should factor these expenses into their pre-Medicare planning well in advance. This means knowing how premiums will fit into their overall retirement budget and how to balance them with other living expenses. Some retirees bridge the gap with part-time work and employer benefits while others may use savings or income-producing investments to help cover these interim costs. The key is to plan ahead so healthcare doesn’t become a financial burden during these years. Long-Term Care: Insurance or Self-Fund? Long-term care is often seen as the wild card of retirement healthcare. It’s help with daily activities, home health aides, assisted living or nursing home care. These costs aren’t covered by standard Medicare plans , except in limited circumstances, so retirees must either buy separate coverage or self-fund. Long-term care insurance can help offset some of these costs but comes with premiums that may increase over time. Policies vary in what they cover so be sure to review the details before committing. If you prefer to self-fund it’s essential to set aside assets specifically for future care needs. This may mean building a dedicated savings or investment account so funds are available when needed. A financial advisor can help determine which approach is right for your health outlook, financial resources and family support network. The choice is personal but having a plan is better than leaving it to chance. How to Use HSAs, Annuities and Income Buckets to Help Bridge the Gap For retirees looking to cover healthcare costs without depleting savings several financial tools can help. Here are just a few examples. A Health Savings Account (HSA) is one of the most tax-efficient ways to prepare for medical expenses. Contributions to an HSA are tax-deductible and withdrawals for qualified medical expenses are tax-free. You can’t contribute to an HSA once you’re on Medicare but the funds already in the account are available for healthcare expenses in retirement. Using an HSA strategically can create a dedicated pool of funds for medical costs. Annuities can also be a useful tool providing a steady stream of income that can be allocated towards healthcare. Not all retirees will need or want an annuity but it can be an effective way to create predictable income to help offset ongoing costs like insurance premiums. Another approach is to structure retirement assets into income buckets. This means dividing investments into different time segments with one bucket for short-to mid term needs like healthcare. By having a specific allocation for medical expenses, retirees can reduce the risk of having to sell long-term investments at an inopportune time to cover unexpected costs. These strategies require coordination but can provide a safety net. A knowledgeable advisor at Pioneer Wealth Management can help determine which options are right for your retirement plan. Final Checklist: Questions to Ask Your Advisor Retirement healthcare costs require open discussion and planning. Ask your advisor: How do I estimate my annual healthcare costs in retirement? How do I plan for the years before Medicare? What options are available to bridge the gap until I turn 65? Should I get long-term care insurance or self-fund? How might an HSA, annuities or investments help with healthcare expenses? What’s the most tax-efficient way to pay for medical costs in retirement? How do we adjust my income plan if healthcare costs go up unexpectedly? Once you discuss these questions, you’ll be able to create the healthcare strategy that aligns with your overall retirement strategy. Conclusion Healthcare costs can be a big deal in retirement and planning for them is key. From the years before Medicare to potential long-term care needs, retirees have a lot of potential expenses to plan for. By understanding the challenges and considering tools like HSAs, insurance, annuities and structured income strategies, retirees can create a safety net to help protect their lifestyle. Work with a trusted advisor at Pioneer Wealth Management to get clarity and confidence on these decisions. Talk to us today to begin creating a solid healthcare strategy for retirement. Investment Advisory Services offered through CreativeOne Wealth, LLC, a registered investment adviser. CreativeOne Wealth and Pioneer Wealth Management are not affiliated companies. Licensed Insurance Professional. We are not affiliated with or endorsed by any government agency, and do not provide tax or legal advice.Investing involves risk, including possible loss of principal. Insurance guarantees are backed by the financial strength of the issuing company. This material is for informational purposes only. Investment advisory services are provided in accordance with a fiduciary duty of care and loyalty that includes putting your interests first and disclosing conflicts. Insurance services have a best interest standard which requires recommendations to be in your best interest. Advisors may receive commission for the sale of insurance and annuity products.

Healthcare is often one of the biggest and most persistent expenses in retirement. Even if you enter retirement healthy, costs can add up fast from insurance premiums, out-of-pocket medical bills, prescriptions and potential long-term care needs. Many retirees underestimate these expenses, especially before they are eligible for Medicare. This can put a strain on retirement savings if there is no plan in place. A thoughtful approach to healthcare planning can make a big difference in keeping you financially stable and at peace. By knowing where costs might arise and how to pay for them, you can plan for the future with confidence. In this article, we’ll look at all the healthcare costs a retiree can expect before, and after, Medicare. Keep reading to learn how to plan adequately for your retirement health expenses. Why Healthcare Is Often a Top Retirement Expense Healthcare is often a top retirement expense. According to Fidelity’s projections , an individual retiring at 65 in 2025 may need an estimated $172,500, up 5% from 2023, to cover medical expenses in retirement. This includes premiums, deductibles and out-of-pocket costs but does not include long-term care, which is often an additional and big expense. These costs can be higher for those retiring before Medicare eligibility. Without planning, early retirees could face higher premiums for private insurance or marketplace plans, especially if they have preexisting conditions or need more comprehensive coverage.  Remember medical inflation outpaces general inflation so healthcare costs may continue to rise faster than most other expenses. What Retirees Will Pay Before Medicare One of the biggest gaps in retirement healthcare planning is the period before Medicare kicks in at age 65. Retirees who leave the workforce earlier need to get their other coverage during these years. Options may include continuing employer-sponsored coverage through COBRA, buying an individual plan on the health insurance marketplace or exploring retirement health insurance options from a former employer. For couples that don’t retire at the same time, another potential solution is coverage under the working spouse’s employer-sponsored health plan. This can often provide more affordable and comprehensive benefits compared to individual plans. Each of these options has different costs and coverage details, so careful evaluation is key. Early retirees should factor these expenses into their pre-Medicare planning well in advance. This means knowing how premiums will fit into their overall retirement budget and how to balance them with other living expenses. Some retirees bridge the gap with part-time work and employer benefits while others may use savings or income-producing investments to help cover these interim costs. The key is to plan ahead so healthcare doesn’t become a financial burden during these years. Long-Term Care: Insurance or Self-Fund? Long-term care is often seen as the wild card of retirement healthcare. It’s help with daily activities, home health aides, assisted living or nursing home care. These costs aren’t covered by standard Medicare plans , except in limited circumstances, so retirees must either buy separate coverage or self-fund. Long-term care insurance can help offset some of these costs but comes with premiums that may increase over time. Policies vary in what they cover so be sure to review the details before committing. If you prefer to self-fund it’s essential to set aside assets specifically for future care needs. This may mean building a dedicated savings or investment account so funds are available when needed. A financial advisor can help determine which approach is right for your health outlook, financial resources and family support network. The choice is personal but having a plan is better than leaving it to chance. How to Use HSAs, Annuities and Income Buckets to Help Bridge the Gap For retirees looking to cover healthcare costs without depleting savings several financial tools can help. Here are just a few examples. A Health Savings Account (HSA) is one of the most tax-efficient ways to prepare for medical expenses. Contributions to an HSA are tax-deductible and withdrawals for qualified medical expenses are tax-free. You can’t contribute to an HSA once you’re on Medicare but the funds already in the account are available for healthcare expenses in retirement. Using an HSA strategically can create a dedicated pool of funds for medical costs. Annuities can also be a useful tool providing a steady stream of income that can be allocated towards healthcare. Not all retirees will need or want an annuity but it can be an effective way to create predictable income to help offset ongoing costs like insurance premiums. Another approach is to structure retirement assets into income buckets. This means dividing investments into different time segments with one bucket for short-to mid term needs like healthcare. By having a specific allocation for medical expenses, retirees can reduce the risk of having to sell long-term investments at an inopportune time to cover unexpected costs. These strategies require coordination but can provide a safety net. A knowledgeable advisor at Pioneer Wealth Management can help determine which options are right for your retirement plan. Final Checklist: Questions to Ask Your Advisor Retirement healthcare costs require open discussion and planning. Ask your advisor: How do I estimate my annual healthcare costs in retirement? How do I plan for the years before Medicare? What options are available to bridge the gap until I turn 65? Should I get long-term care insurance or self-fund? How might an HSA, annuities or investments help with healthcare expenses? What’s the most tax-efficient way to pay for medical costs in retirement? How do we adjust my income plan if healthcare costs go up unexpectedly? Once you discuss these questions, you’ll be able to create the healthcare strategy that aligns with your overall retirement strategy. Conclusion Healthcare costs can be a big deal in retirement and planning for them is key. From the years before Medicare to potential long-term care needs, retirees have a lot of potential expenses to plan for. By understanding the challenges and considering tools like HSAs, insurance, annuities and structured income strategies, retirees can create a safety net to help protect their lifestyle. Work with a trusted advisor at Pioneer Wealth Management to get clarity and confidence on these decisions. Talk to us today to begin creating a solid healthcare strategy for retirement. Investment Advisory Services offered through CreativeOne Wealth, LLC, a registered investment adviser. CreativeOne Wealth and Pioneer Wealth Management are not affiliated companies. Licensed Insurance Professional. We are not affiliated with or endorsed by any government agency, and do not provide tax or legal advice.Investing involves risk, including possible loss of principal. Insurance guarantees are backed by the financial strength of the issuing company. This material is for informational purposes only. Investment advisory services are provided in accordance with a fiduciary duty of care and loyalty that includes putting your interests first and disclosing conflicts. Insurance services have a best interest standard which requires recommendations to be in your best interest. Advisors may receive commission for the sale of insurance and annuity products.

If you have changed jobs a few times, you are not alone. Most people end up with several 401(k)s scattered across old employers, each one quietly sitting in the background. It might not seem like a big deal, but over time, those forgotten accounts can make your retirement picture harder to understand. Every new job typically means a new retirement plan. When you move on, your old account often stays behind, still invested but no longer managed with your overall goals in mind. That setup can leave your money working in different directions, and the longer it goes, the harder it becomes to keep track of what you really own. That is why consolidating all your old 401(k)s into a single, professionally managed IRA is often the best move you can make. It helps you organize your savings, reduce fees, and create a unified strategy designed around your future. And with a 401(k) rollover advisor like Tim from Pioneer Wealth Management, the process is simple, secure, and completely tailored to your needs. Why So Many People Have Unmanaged 401(k)s It is completely normal to have more than one 401(k) from previous jobs. You start one plan, switch jobs, start another, and before long you have several accounts scattered across different providers. Many people delay rolling them over because it feels confusing or time-consuming. Others are worried about triggering taxes or making a mistake. Some just assume that as long as the accounts are growing, everything is fine. But those “out of sight, out of mind” accounts can lead to missed opportunities. Without active oversight, your investments may overlap, sit in outdated funds, or carry higher fees than you realize. And because you are not looking at them often, you might lose track of changes or forget to update beneficiaries. The result is a messy retirement picture that is harder to manage and less effective over time. The Hidden Costs of Multiple Retirement Accounts Leaving old 401(k)s unattended can quietly eat away at your growth. Each account has its own administrative fees, fund expenses, and possibly overlapping investments. When these costs are spread across multiple plans, you end up paying more without gaining any real benefit. Scattered accounts also make it difficult to measure performance. You might have some plans doing well while others lag behind, but without a consolidated view, it is nearly impossible to tell how your overall portfolio is performing. There is also the risk of neglect. Outdated addresses or lost login details can make it harder to access your money when you need it. And if you forget to update beneficiaries after major life changes, your retirement assets might not go where you intend. Consolidating into a single, managed IRA eliminates these issues. You can see your entire portfolio in one place, track your progress clearly, and make decisions based on the full picture, not just pieces of it. Why Rolling Old 401(k)s Into an IRA Is Often the Best Move When it comes to dealing with old 401(k)s, you generally have three choices: Leave them where they are Roll them into your current employer’s plan Move them into an IRA Leaving them in your old plans might seem easiest, but that means continuing to juggle multiple accounts, each with its own fees and investment lineup. 401(k) rollover could simplify things slightly, but many workplace plans limit your investment options or charge higher fees. By contrast, rolling your old 401(k)s into a professionally managed IRA gives you more flexibility, more control, and more opportunity to grow your money efficiently. With an IRA, you are not bound by your employer’s fund list. You can choose from a much broader selection of investments and design a portfolio that fits your specific goals and comfort with risk. A managed IRA through Pioneer Wealth Management takes that one step further. Instead of juggling multiple retirement accounts on your own, you get expert guidance, customized investment management, and ongoing monitoring to keep your plan on track. How Pioneer Wealth Management Simplifies the Process Many people hesitate to consolidate because they worry it will be complicated. But with the right guidance, it can be remarkably smooth. T im and the team at Pioneer Wealth Management specialize in helping clients bring all their old 401(k)s together into one clearly managed IRA. Here is what you can expect when you work with them: Step-by-step rollover support: The team handles every detail, from contacting providers to submitting forms. You never have to worry about making a wrong move or triggering unnecessary taxes. Transparent analysis of fees and investments: They compare your current plans to identify hidden costs and underperforming funds. Personalized investment strategy: Your new IRA is built specifically for your timeline, goals, and tax situation, not a one-size-fits-all approach. Continuous monitoring: Once your IRA is in place, the team continues to oversee your investments, rebalancing and adjusting as needed to keep everything aligned with your goals. With Pioneer Wealth Management, your money is no longer scattered or forgotten. It is organized, watched over, and working toward your future in a clear and coordinated way. How to Start Consolidating Your Accounts If you are ready to take control of your retirement savings, here is how to begin: Gather your information. List each old 401(k) you have, where it is held, and your most recent statement. Meet with Tim and the Pioneer team . They will review your current accounts, identify hidden fees, and pinpoint overlapping investments. Decide on your consolidation plan. Together, you will determine the best structure for your managed IRA. Let the professionals handle the transfer. Pioneer Wealth Management coordinates the rollovers directly with each provider to ensure everything moves smoothly and tax-free. Stay engaged with your plan. Once everything is in one place, you will receive ongoing updates, reviews, and recommendations to keep your portfolio performing at its best. With this hands-on support, you can move from scattered and uncertain to clear, confident, and organized in just a few simple steps. When It Might Make Sense to Keep a 401(k) While consolidating is the best choice for most people, there are rare situations where keeping a specific 401(k) could be beneficial. Some plans offer unique institutional funds or special withdrawal provisions that IRAs do not. That is why working with a fiduciary like Tim is so valuable. He reviews each plan individually to determine whether keeping it separate actually adds value or if rolling it over would be the smarter move. Why a Managed IRA Brings Real Peace of Mind Having one professionally managed IRA instead of several scattered accounts brings clarity, convenience, and confidence. You will know exactly where your money is, how it is performing, and what steps are being taken to keep it growing. At Pioneer Wealth Management, the goal is simple: to make your retirement planning easier while helping you get the most out of what you have saved. Tim and his team act as fiduciaries, meaning they always put your interests first. Their focus is on helping you make informed choices that strengthen your financial future. The Bottom Line If you have multiple 401(k)s from past employers, now is the time to take action. Consolidating them into a single, professionally managed IRA can help you simplify your finances, reduce costs, and make your retirement strategy more efficient. Pioneer Wealth Management has the expertise and tools to make that happen smoothly and safely. You will gain a clearer view of your entire portfolio and the confidence that comes from knowing your savings are being managed by professionals who truly have your back. Reach out to Tim and the team at Pioneer Wealth Management today to start consolidating your old 401(k)s into a unified, professionally managed IRA. It is one of the easiest and most rewarding financial decisions you can make for your future.

Social Security is an essential source of retirement income for millions of Americans, yet many retirees leave money on the table by not fully understanding how to optimize their benefits. Claiming Social Security at the right time and using strategic approaches can significantly boost your retirement income. In this article, we’ll explore unique strategies like restricted applications, spousal benefits, and delayed retirement credits to help you maximize your Social Security payouts. Whether you’re nearing retirement or just starting to plan, these insights can make a substantial difference in your financial future. How Social Security Benefits Are Calculated Before diving into strategies, it’s important to understand how Social Security benefits are determined. The Social Security Administration (SSA) calculates your benefits using a formula based on: Your lifetime earnings : The SSA averages your highest 35 years of earnings to determine your primary insurance amount (PIA). Your full retirement age (FRA) : Your FRA is between 66 and 67, depending on your birth year. If you claim before this age, you receive reduced benefits. Early vs. delayed claiming : Claiming before your FRA reduces benefits, while delaying beyond FRA increases them through delayed retirement credits . Early vs. Delayed Claiming: The Financial Impact If you claim Social Security benefits as early as age 62, your payments can be permanently reduced by 25–30% compared to what you would receive at your FRA. On the other hand, if you delay until age 70, your benefit amount increases by 8% per year after your FRA. For example: If your FRA benefit is $2,000 per month, claiming at 62 would reduce it to $1,400 per month. If you delay until a ge 70, your benefit could grow to $2,480 per month. This difference adds up significantly over time. Delaying your claim may be beneficial if you have other sources of income to support you in the meantime. Best Social Security Optimization Strategies 1. Delayed Retirement Credits: Waiting Until Age 70 As explained above, d elaying your claim until age 70 is one of the most effective ways to increase Social Security benefits. This strategy results in an 8% increase per year after your FRA, creating a permanent increase in your monthly payments. For retirees in good health with other retirement savings, waiting until age 70 can maximize lifetime income. A higher benefit also provides greater survivor benefits for a spouse in the event of your passing. 2. Spousal and Survivor Benefits: Maximizing Household Income Spousal benefits allow a lower-earning spouse to claim up to 50% of their partner’s full retirement benefit. This can be a valuable option if one spouse had lower lifetime earnings. For example, if a worker’s full benefit is $2,500 per month, their spouse could claim up to $1,250 per month, even if they didn’t work enough to qualify for their own Social Security benefit. Survivor benefits allow a widow or widower to claim 100% of their deceased spouse’s benefit, provided they meet eligibility requirements. This makes it essential for the higher-earning spouse to delay benefits, ensuring a larger survivor benefit for the surviving partner. 3. Restricted Application: A Strategy for Those Born Before 1954 A restricted application is a lesser-known strategy available only to those born on or before January 1, 1954. It allows an individual to claim spousal benefits first while letting their own benefit continue to grow. For example, a retiree could collect spousal benefits (50% of their spouse’s FRA benefit) from age 67 to 70, while allowing their own benefit to increase through delayed retirement credits. At 70, they could switch to their now higher personal benefit. Although this option is no longer available for younger retirees, those eligible should consider it to maximize total household Social Security income. 4. Earnings Test Exemption: Working While Collecting Benefits Many retirees choose to work while collecting Social Security, but claiming benefits before FRA can trigger the earnings test. If you earn above $23,400 (in 2025) before reaching FRA, $1 in benefits is withheld for every $2 earned over the limit. However, once you reach your FRA, the earnings test no longer applies. If benefits were withheld due to excess earnings, the SSA recalculates your benefits at FRA to account for the reduction, ensuring you don’t permanently lose that income. For retirees planning to work beyond FRA, delaying benefits can help avoid unnecessary reductions and maximize total lifetime income. Common Mistakes to Avoid Social security optimization while planning for your retirement can be a tall order. However, it’s always easy to start by identifying common mistakes and avoiding them. Here are some common mistakes you should steer clear of to maximize your Social Security benefits: 1. Claiming Too Early Without Considering the Long-Term Impact Many retirees claim benefits at 62, unaware of how much their monthly income will be reduced. While claiming early may be necessary for those with health issues or financial needs, it can result in significantly lower lifetime earnings. 2. Ignoring Spousal and Dependent Benefits Many retirees fail to explore whether they qualify for spousal or survivor benefits. In some cases, a spousal benefit may be higher than their own, making it a better option. Additionally, widows and widowers should carefully plan when to switch from their survivor benefit to their own benefit if it results in a higher lifetime income. 3. Failing to Coordinate Social Security With Other Retirement Income Social Security should be part of a broader retirement strategy, including 401(k) withdrawals, pensions, and savings. Poor coordination can lead to higher tax liability or unnecessary benefit reductions. A financial advisor can help create a plan that balances withdrawals from taxable and tax-advantaged accounts, ensuring you maximize both Social Security and your overall retirement income. 4. Overlooking Taxes on Social Security Benefits Many retirees don’t realize Social Security benefits can be taxed. If your c ombined income (AGI + nontaxable interest + half of Social Security benefits) exceeds: $25,000 (single) or $32,000 (married filing jointly) : Up to 50% of benefits may be taxable. $34,000 (single) or $44,000 (married filing jointly) : Up to 85% of benefits may be taxable. To minimize taxes, consider withdrawing from taxable accounts first or delaying Social Security to reduce taxable income in early retirement. Conclusion Maximizing Social Security benefits requires careful planning and strategic decision-making. You can increase your lifetime Social Security income by utilizing delayed retirement credits, spousal benefits, restricted applications, and earnings test exemptions. Before claiming, take the time to evaluate your options, consider the long-term financial impact, and seek professional guidance from tax professionals . The right claiming strategy can make a significant difference in your overall retirement income and financial security. Investment advisory services are provided in accordance with a fiduciary duty of care and loyalty that includes putting your interests first and disclosing conflicts. Insurance services have a best interest standard which requires recommendations to be in your best interest. Advisors may receive commission for the sale of insurance and annuity products. Additional details including potential conflicts of interest are available in our firm's ADV Part 2A and Form CRS (for advisory services) and the Insurance Agent Disclosure for Annuities form (for annuity recommendations).