Seed or Harvest
L.E.O.
Law Enforcement Officer
Independent Financial Education Podcast.
Episode 12
7th JANUARY
Officer Ty
LEO PODCAST
LEO Retirement: Social Security Timing & Medicare Costs | MAPFL
Understanding the Social Security Benefit Timeline
Knowing about your Social Security benefits helps you plan for retirement. The Social Security Administration (SSA) handles these benefits. To get them, you usually need to work and pay into Social Security for about 10 years or earn 40 credits.
The Social Security filing rules can feel confusing. You have to know when you can get your money and how that choice changes your retirement income. Planning your timing right matters a lot.
Quick Answer (60 seconds)
A good Social Security decision is rarely just “maximize the check.” It is about building a retirement income plan that lasts.
Here is a practical approach aligned with what the episode emphasizes:
Confirm your earnings record and projected benefits through your SSA account.
Identify which benefits might apply: personal, spousal, divorced spousal, and survivor.
Decide whether you will keep working before FRA and evaluate the earnings test impact.
Model multiple scenarios, including taxes and healthcare costs.
Document the plan so you know why you chose a strategy and what would cause you to change course.
Table of Contents
- Quick Answer (60 seconds)
- Table of Contents
- Social Security Basics You Need Before Choosing a Claiming Date
- The Three Claiming Options: Early, Full Retirement Age, or Delayed
- Break-Even Age and Longevity Planning
- Why Delaying Can Be Powerful (and Why “Guaranteed” Matters)
- Spousal Benefits: How the “Excess” Amount Is Determined
- Divorced Spouse Benefits: Common Rules People Miss
- Survivor Benefits: Timing, Remarriage Rules, and Why Details Matter
- The Earnings Test: What Happens If You Claim Early and Keep Working
- Is Social Security Taxable? Understanding the “Up to 85%” Rule
- Medicare and Income: Why Higher Taxable Income Can Raise Healthcare Costs
- Next Steps: How to Make a Confident Claiming Decision
- FAQs
- Key Takeaways
The Three Claiming Options: Early, Full Retirement Age, or Delayed
Todd frames claiming as a choice between:
Early retirement (as early as age 62)
Full Retirement Age (FRA)
Delayed retirement (up to age 70)
For people with an FRA of 67, the episode discusses that claiming at 62 can mean about a 30% permanent reduction in benefits for life. While annual cost-of-living adjustments (COLAs) may apply, the base benefit is still lower if you start early.
Todd also notes that the FRA has changed over time and may continue to be debated, but your claiming decision still needs to work inside your retirement income plan as it exists today.
Break-Even Age and Longevity Planning
One of the clearest ways to evaluate “claim now vs wait” is to calculate a break-even age. In the conversation, Todd shares an example where the break-even age came out around 81, noting that many break-even results often land in the 80–82 range.
This is not the only factor, but it is a useful starting point:
If you expect a shorter lifespan, early claiming may look more attractive.
If you expect to live longer, delaying can increase lifetime income and provide more protection against longevity risk.
A retirement income plan should also stress-test scenarios like early death (survivor needs) and living a long time (income sustainability).
Why Delaying Can Be Powerful (and Why “Guaranteed” Matters)
In the episode, Todd highlights delayed retirement credits and explains why they can be compelling: the increase is discussed as 8% per year for delaying beyond full retirement age.
He also points out a practical planning reality: market returns are not guaranteed, but Social Security’s delayed retirement credit formula (as described in the episode) is built into the benefit rules. That “guarantee” is why “take it early and invest it” is not automatically the winning strategy, especially for people who continue working.
Todd also references that the difference between claiming at 62 and claiming at 70 is discussed as a 77% larger check under the current formulas described in the conversation.
Spousal Benefits: How the “Excess” Amount Is Determined
For married couples, Social Security can become a coordination problem, not just an individual decision.
Todd walks through a simplified framework using the Primary Insurance Amount (PIA), which is the benefit tied to full retirement age. In the example discussed:
A higher earner has a PIA of $3,000 per month.
The other spouse has a PIA of $1,000 per month.
Social Security compares 50% of the higher earner’s PIA to the other spouse’s PIA.
If there is a difference, the other spouse may receive an “excess” spousal amount so the total check equals 50% of the higher earner’s PIA (when filed at FRA, as discussed in the example).
Important caution from the episode: claiming early can permanently reduce benefits, and that reduction can also affect spousal outcomes.
Divorced Spouse Benefits: Common Rules People Miss
Divorced spouse benefits are frequently overlooked. Todd explains that eligibility depends on meeting specific criteria, including (as discussed in the episode) items like length of marriage and the former spouse being old enough to be eligible.
A major planning issue is that people often do not know what questions to ask, and Social Security staff typically cannot provide proactive advice. That means divorced individuals often need help identifying which benefits they may qualify for and when to file.
If you are in Arizona and want help coordinating your retirement plan with complex family history, MAPFL can help you map it out with scenario planning. Learn more about MAPFL here: https://mapfl.com/about-us/
Survivor Benefits: Timing, Remarriage Rules, and Why Details Matter
Survivor benefits can be a major source of retirement income. In the episode, Todd and the hosts discuss how survivor rules include details such as:
Age-related eligibility requirements (with special rules in disability situations)
Remarriage timing rules (including a key rule referenced in the conversation about remarrying before a certain age)
Documentation and field office support
A practical tip from the conversation: many people have better results visiting a Social Security field office in person with the right documentation than trying to resolve everything by phone.
Because these rules are detail-sensitive, a planning professional can help you prepare for the appointment and confirm which options apply to your situation.
The Earnings Test: What Happens If You Claim Early and Keep Working
If you take Social Security before full retirement age and continue working, you may be subject to the earnings test.
Todd explains it this way in the episode: you may forfeit $1 in benefits for every $2 earned above the annual limit. The episode cites an annual limit of $23,400 in 2025.
He also shares an example illustrating the risk: someone earning $71,400 per year while collecting early benefits could forfeit a significant amount of benefits over several years (the example discusses more than $96,000 over the timeframe shown).
Two planning implications:
“Claim early and invest it” can fail if you lose a large portion of benefits to the earnings test.
If spousal benefits are being paid on the same earnings record, the withholding dynamics can affect the household’s cash flow planning.
Is Social Security Taxable? Understanding the “Up to 85%” Rule
In the episode, Todd explains that Social Security can be taxable and that, depending on other income, up to 85% of your Social Security benefit may be included as taxable income.
This surprises many retirees, especially those who assumed benefits would be tax-free because they “paid in” during their working years. The hosts also point out that it can be easy to reach the “up to 85%” taxable range when you have other income sources such as pensions, distributions from retirement accounts, or ongoing earnings.
If taxes are part of your retirement stress, MAPFL often coordinates retirement income decisions alongside healthcare and coverage planning. Related resources:
Medicare and Income: Why Higher Taxable Income Can Raise Healthcare Costs
Although Medicare eligibility generally starts at 65 (not when you claim Social Security at 62), Medicare costs can still become part of the Social Security conversation.
In the episode, Todd explains that Medicare premiums can rise when taxable income is higher. The group discusses how stacking additional taxable income can increase Medicare costs, which can surprise retirees who assumed healthcare would automatically become “cheap” at 65.
This is one reason MAPFL encourages integrated planning: Social Security claiming, taxes, and healthcare costs can interact in ways that do not show up when you only look at one decision in isolation. If you want to explore coverage and retirement timing options, start here: https://mapfl.com/schedule-your-appointment/
Key Takeaways
Claiming at 62 can permanently reduce benefits compared with FRA and delaying to 70.
Delaying can be especially powerful when you expect longevity and want more guaranteed income later.
Spousal, divorced spousal, and survivor rules can materially change the best strategy.
Claiming early while still working can trigger the earnings test and reduce benefits.
Social Security taxation and Medicare premium impacts make coordination essential.
Reviewed by: MAPFL Editorial Team (Maximize Asset Protection)
FAQs
In the episode, “fully insured” is described as earning 40 credits, which is roughly about 10 years of work history. If you are not sure, review your earnings record and projections through your Social Security account. Eligibility details can vary, so confirm your record before making claiming decisions.
For someone with a full retirement age of 67, the episode discusses a permanent reduction of about 30% if benefits start at 62. That lower base benefit then receives COLA adjustments over time, but the starting point remains lower. This is why the claiming age decision can affect lifetime income.
FRA is the age when you receive your full primary insurance amount under the Social Security formula for your birth year. Age 70 is the last age to earn delayed retirement credits, so waiting beyond FRA can increase your benefit up to that point. In the episode, delaying after FRA is discussed as producing meaningful benefit increases.
A break-even age is the point where the total benefits from claiming later catch up to the total benefits from claiming earlier. The episode gives an example break-even around age 81 and notes many results land in the 80–82 range. It helps frame the decision around longevity, but it should be paired with tax and cash-flow planning.
Yes, but if you claim before FRA and continue working, you may be subject to the earnings test. The episode explains it as forfeiting $1 in benefits for every $2 earned over the annual limit (with a 2025 limit example cited). This can materially reduce the benefit you actually receive during those years.
Spousal benefits can supplement your own benefit if your spouse’s benefit is higher and you meet eligibility rules. In the episode’s example, Social Security compares 50% of the higher earner’s PIA to the other spouse’s PIA and may add an “excess” amount. Claiming early can reduce the resulting benefit permanently.
In many cases, yes, if specific eligibility rules are met, including rules tied to the former spouse’s eligibility age. The episode emphasizes that this is commonly misunderstood and can be valuable for someone who did not build a large benefit on their own record. Because details matter, it is often worth getting professional guidance before filing.
Survivor benefits can provide income based on a deceased spouse’s record if the survivor meets eligibility requirements. The episode highlights that remarriage timing rules can affect eligibility, which can surprise people who did not know the rule existed. Because these decisions can be irreversible, planning ahead is important.
The episode explains that depending on other income, up to 85% of Social Security benefits may be included as taxable income. Many retirees hit the higher taxable range when they also have pensions, retirement account withdrawals, or ongoing earnings. This is why claiming strategy should be coordinated with a tax-aware retirement income plan.
No, Medicare eligibility generally begins at age 65, not when you claim Social Security at 62. The episode also notes that Medicare costs can rise with higher taxable income, which can surprise retirees. Coordinating income sources, taxes, and healthcare costs can reduce unpleasant surprises later.
Get Custom Service Quote
Let's Get Connected!
Bring your health journey to life! Get a custom health plan consultation today. Let's connect and create a plan that fits your life perfectly.
Key Points on Advanced Social Security and Medicare Topics
- Social Security spousal excess benefit calculation: This calculates extra money spouses receive beyond their own benefit based on the higher earner’s PIA.
- Social Security survivor spouse benefits: Survivors can claim based on the deceased spouse’s work record, helping maintain income after loss.
- Social Security filing penalties: Filing early results in permanent reductions; knowing timing avoids these penalties.
- Social Security suspension rules: Allow benefit suspension after FRA to earn delayed credits without tax penalties.
- Social Security eligibility requirements: Typically require 40 credits (about 10 years of work). Some special rules apply for survivors or spouses.
- Social Security projections and analysis: Tools forecast future benefits considering claiming age and income to aid strategy planning.
- Social Security political challenges: Discussions around solvency and reforms may affect future payments but not current entitlements.
- Social Security investment strategy risks: Relying solely on investments over guaranteed SS benefits adds risk to retirement income stability.
- Social Security taxability rules: Determine how much of your benefit counts as taxable income based on combined income thresholds.
- Social Security windfall elimination provision (WEP): Reduces SS benefits if you receive a non-covered pension from government jobs.
- Medicare premium scaling: Higher incomes pay more through IRMAA adjustments affecting Part B premiums yearly.
- Medicare premium penalties and deductions: Late enrollment triggers penalties added to monthly premiums; timely signup avoids extra costs.
- Medicare costs related to taxable income: Taxable parts of SS can increase Medicare premiums due next year via IRMAA rules.
- Social Security earnings test violator effects: Earnings above limits reduce current month benefits; withheld amounts pay back at FRA but affect cash flow now.
- Social Security sunset provisions impact: Certain tax or policy changes phase out over time affecting future eligibility or rates slightly.
Podcast Latest Episodes
Social Security Basics You Need Before Choosing a Claiming Date
Before you can optimize anything, you have to understand what you are eligible for.
In the episode, Todd explains that “fully insured” generally means you have earned 40 credits, which is roughly about 10 years of work history. If you are unsure where you stand, you can create an online account and review your earnings record and benefit estimates on ssa.gov.
Social Security decisions are rarely “one-size-fits-all.” The right strategy depends on your work history, marital history, health and longevity expectations, taxes, and whether you will keep earning income after you claim.