By [Lacey Thompson- Krul]

Financial Educator | Retirement Strategist

For most Americans, Social Security is the single largest source of retirement income. But here’s the truth: many people unknowingly miss out on tens—sometimes hundreds—of—thousands of dollars in lifetime benefits by not planning properly.

With new cost-of-living adjustments and inflation shifts, 2025 is a crucial year to take a fresh look at your Social Security strategy. Beyond the standard advice of “delay until 70,” there are some powerful, lesser-known opportunities that may help you retire smarter and stronger.

1. Use “Bridge” Income to Delay Benefits—Tax-Efficiently

Delaying your Social Security benefits can earn you up to 8% more per year—but how do you cover the gap if you retire before 70?

Enter bridge income: a strategy where you intentionally draw from other retirement accounts, like IRAs or brokerage accounts, in your 60s to “bridge” the gap until age 70.

Why it matters:
– You lock in higher Social Security for life
– You may land in a lower tax bracket by drawing from pre-tax accounts while your income is lower
– You gain more control over your overall tax picture

PRO TIP: Use this time to convert traditional IRA dollars into Roth while your income is temporarily lower.

2. Coordinate Spousal Benefits with a “Split Strategy”

If you’re married, one of the most overlooked techniques is split claiming, where one spouse claims early and the other delays until 70.

Example:
– Spouse A (higher earner) delays until age 70
– Spouse B (lower earner) claims at full retirement age (or earlier, if needed)

This creates income earlier without sacrificing long-term benefit growth and ensures a higher survivor benefit.

3. Avoid the “Tax Torpedo” by Managing Your MAGI

Most people are shocked to learn that up to 85% of their Social Security can be taxed. The trigger? Your Modified Adjusted Gross Income (MAGI)—which includes IRA withdrawals, part-time work, and even interest from municipal bonds.

This creates what’s called a “tax torpedo.”

Shield yourself with these tactics:
– Draw from Roth IRAs or HSAs for tax-free income
– Use QCDs (Qualified Charitable Distributions) to fulfill RMDs without increasing MAGI
– Use a staggered withdrawal approach to smooth out income

Bonus Insight: The Psychological ROI of Social Security Planning

Here’s something often left out of the financial articles: the emotional return of making confident, informed decisions about your benefits.

Clients often tell us:
“It’s not just about the money—I feel like I finally have peace of mind.”

Ready to Personalize Your Plan?

If you’re between the ages of 55–70, now is the time to build your personal Social Security roadmap. A quick strategy session could help you avoid costly mistakes—and open up new possibilities for your future.

Schedule your complimentary Social Security Analysis now:

Visit: https://calendly.com/surefirefinancial/socialsecurityanalysis
Or email: Lacey@surefirefinancial.com