Maximizing Social Security Benefits

When it comes to Social Security, there’s no one-size-fits-all answer. It’s crucial to remember that everyone’s circumstances differ. Factors ranging from health and financial situation to marital status all play a role.

• In 2026, retirees can look forward to higher income limits. For those aged 65 and over during tax filing, a new senior citizen tax credit will kick in, coupled with a 2.8% cost-of-living adjustment.

Determining the right time to collect Social Security is pretty significant. Opting for benefits early at age 62 can ensure a steady paycheck over time, but it can also mean shorter payouts since full retirement age is 67 for those born after 1960. Delaying can lead to increased monthly benefits but receiving payments for a shorter period overall.

Experts like Mark Kiner and Jim Blair, consultants at Premier Social Security Consulting, shed light on what one should consider before claiming benefits and what changes are on the horizon for 2026. Their insights have been edited for clarity.

Investopedia: Many wonder about the best strategies for maximizing Social Security. When is it wise to delay benefits?

Mark Kiner: It’s important not to think of 62 or 70 as the “best” ages to start collecting. Only about 5% to 7% of people wait until they turn 70, while 20% to 25% opt for 62.

People should really evaluate their individual situations—this includes taking into account not just themselves but also spouses and even considering joint lifetime benefits, particularly for married couples.

Jim Blair: If someone is single, questions about their health and whether they are still working are essential. They need to assess their financial needs too.

For couples, understanding each partner’s work history and the importance of survivor benefits matters significantly. High earners might benefit from delaying their claims longer if survivor benefits are a priority.

Age differences also come into play. Filing for benefits at 62 may be advantageous for couples with a 5 to 10-year age gap since the younger spouse could receive survivor benefits before reaching a critical age—referred to as the break-even point, where delaying benefits no longer outweighs early collection.

Additionally, it’s worth considering if there are children involved, especially those who might be minors or have disabilities that could make them eligible for benefits.

Investopedia: What upcoming changes to Social Security should we be aware of for 2026?

Blair: The earnings threshold before benefits are impacted has gone up—previously at $23,400, it will now be $24,480. For earnings exceeding this limit, $1 will be deducted from benefits for every $2 earned if under full retirement age.

In the year you are set to reach full retirement age, the limits will stand at $62,160 in 2025, climbing to $65,160, where $1 will be deducted for every $3 earned beyond that.

A cost-of-living adjustment of 2.8% is coming into effect this month, but you’ll notice an impact on your check next month—hence the common reference as the January increase.

Kinner: Another significant change is the additional deduction for seniors: $6,000 for those 65 and older starting in 2025, which can be claimed even if you’re not receiving Social Security benefits. This will affect adjusted gross income and will ultimately influence taxable income.

Filing jointly will allow couples to take $12,000 off their AGI. This deduction is available for four years, tapering off by 2028, and has income limits of $75,000 for individuals and $150,000 for couples.