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Social Security seems straightforward until you actually start planning around it. According to one financial advisor, most people arrive at retirement with the same handful of questions — and the answers can shape their finances for decades.
Dae Yoon, senior financial advisor at Northwestern Mutual’s Yoon Patel Wealth Partners, shared the questions he hears most often and what every pre-retiree should understand before making any decisions.
When Should I Start Taking Social Security?
Yoon said this is the most common and most consequential question he gets. Benefits are available as early as 62, but claiming early permanently reduces your monthly payment. Waiting past full retirement age increases it. The right answer depends on your health, other income sources and long-term financial goals.
“It’s not a one-size-fits-all decision,” Yoon said.
Will My Benefits Be Taxed?
A lot of clients don’t see this one coming. Depending on your total income in retirement, up to 85% of your Social Security benefit can be subject to federal income tax. Yoon said understanding this before you retire lets you plan withdrawals more strategically and avoid unexpected tax bills.
Does Working in Retirement Affect My Benefits?
You can work and collect Social Security at the same time, but there’s a catch. If you claim before full retirement age and your earnings exceed certain limits, your benefits may be temporarily reduced. Yoon said this makes the combination of timing and income planning especially important for anyone who plans to keep working after they start collecting.
How Much Will I Actually Receive Each Month?
Yoon said most clients underestimate how much their claiming age affects the actual dollar amount they receive each month. Benefits are calculated based on your earnings history and the age at which you file, and the difference between claiming at 62 versus 70 can be substantial. He recommended reviewing your Social Security estimate regularly through the SSA’s online portal so there are no surprises.
Can My Spouse or Family Receive Benefits Too?
Social Security extends beyond the individual. Spouses, ex-spouses and in some cases dependents may also be eligible for benefits, which can meaningfully increase total household income in retirement.
Yoon pointed out that survivor planning matters here too. When one spouse passes away, the lower of the two benefits typically goes away, reducing household income while the surviving spouse may also shift to a single tax filing status, potentially increasing taxes on other income sources. Getting ahead of that scenario, he said, helps couples make more informed decisions together.
