The biggest Social Security secret hiding in plain sight is this: waiting until age 70 to claim can earn you up to $5,108 per month — nearly double what you’d receive by claiming at 62. That single decision, more than almost any other in retirement, can add hundreds of thousands of dollars to your lifetime income. But knowing the maximum is just the starting point. Taxes, Medicare premiums, and required withdrawals from your retirement accounts all take a bite out of that check. Here’s how to keep as much of it as possible.

When should I claim Social Security to maximise my benefit?

Your Social Security benefit grows by roughly 8% for every year you delay past your Full Retirement Age (FRA), which is 67 for anyone born in 1960 or later. Claim at 62 and you lock in a permanent reduction of up to 30%. Claim at 70 and you hit the maximum — currently $5,108 per month for the highest earners in 2026.

Of course, delaying isn’t the right move for everyone. If you have serious health concerns or desperately need the income now, claiming earlier can make sense. But for healthy adults in their early 60s with other savings to draw on, each year of patience is worth serious money. A person who delays from 67 to 70 and lives to 85 could collect $100,000 or more in additional lifetime benefits compared with someone who claimed at FRA.

A practical middle ground: use savings or a part-time income bridge to cover expenses from 62 to 70, then let Social Security do the heavy lifting for the rest of your life.

How much of Social Security is taxable?

Here’s the part most pre-retirees don’t see coming: up to 85% of your Social Security benefit can be subject to federal income tax, depending on your “combined income” (adjusted gross income + nontaxable interest + half your Social Security benefit).

  • Under $25,000 (single) or $32,000 (married filing jointly): benefits are generally not taxed.
  • $25,000–$34,000 (single) or $32,000–$44,000 (married): up to 50% of benefits may be taxable.
  • Above $34,000 (single) or $44,000 (married): up to 85% of benefits may be taxable.

The strategy here is managing what counts as income. Converting traditional IRA funds to a Roth IRA before you start claiming Social Security can reduce your taxable income later, since Roth withdrawals don’t count toward combined income. Talk to a tax professional about your specific situation — the timing of these moves matters enormously.

What are the RMD rules for 2025 and 2026?

Required Minimum Distributions — or RMDs — are the IRS’s way of making sure you eventually pay taxes on money that grew tax-deferred in a traditional IRA or 401(k). Under current rules (unchanged from 2025 into 2026), RMDs begin at age 73. If you turn 73 in 2026, your first RMD is due by April 1, 2027 — but taking two distributions in one year can spike your income and trigger higher taxes.

Why does this matter for Social Security? Because a large RMD can push your combined income over the thresholds above, making more of your Social Security benefit taxable. It can also trigger Medicare surcharges (more on that below). Planning your RMD timing alongside your Social Security claim date is one of the most valuable things a financial planner can help you do.

For 2026, the IRS calculates your RMD by dividing your account balance (as of December 31 of the prior year) by a life-expectancy factor from IRS Publication 590-B. Missing an RMD carries a steep 25% excise tax on the amount you should have withdrawn — so calendar reminders are your friend.

How do I avoid Medicare IRMAA surcharges?

IRMAA stands for Income-Related Monthly Adjustment Amount — a surcharge added to your Medicare Part B and Part D premiums if your income exceeds certain thresholds. In plain English: if you earn too much, Medicare costs you more.

For 2026, the surcharges kick in when your modified adjusted gross income (MAGI) from two years prior — meaning your 2024 tax return — exceeds approximately $106,000 for individuals or $212,000 for married couples. At the highest income tier, the surcharge can add over $400 per month per person to your Medicare bill.

Common triggers include a one-time event like selling a rental property, taking a large Roth conversion, or — yes — a big RMD. If you experienced an unusual income spike that has since dropped, you can appeal your IRMAA determination using Form SSA-44, which asks Medicare to use a more recent year’s income instead.

The best prevention is proactive income planning in the years leading up to Medicare enrollment (age 65) and beyond.

What is the Medicare Part B premium for 2025 and 2026?

The standard Medicare Part B premium for 2025 was $185.00 per month. For 2026, the Centers for Medicare & Medicaid Services has confirmed an increase — the standard premium has risen to $185.00–$197.00 per month depending on final CMS announcements, with IRMAA surcharges layered on top for higher earners.

Remember: Part B premiums are typically deducted directly from your Social Security check. That means the bigger your benefit (hello, $5,108/month), the less the premium sting feels as a percentage of income — another quiet argument for delaying your claim.

Beyond Part B, factor in Part D (prescription drug coverage) and any Medigap or Medicare Advantage plan premiums when calculating your true retirement healthcare budget. Healthcare costs are the single most underestimated expense in retirement planning.

Putting it all together

The $5,108 monthly maximum isn’t just a number to admire — it’s a target to engineer toward. That means:

  1. Delay your claim as long as your health and finances allow, ideally to 70.
  2. Manage your taxable income before and after claiming to keep more of each check.
  3. Plan your RMDs so they don’t unexpectedly push you into higher tax or IRMAA brackets.
  4. Watch your Medicare premiums and appeal IRMAA if your income has genuinely dropped.

None of these moves require a finance degree. They just require knowing the rules — and making a plan before the deadlines sneak up on you.

Frequently Asked Questions

Frequently Asked Questions

When should I claim Social Security to maximise my benefit?

You maximise your Social Security benefit by waiting until age 70, when the 2026 maximum reaches $5,108 per month. Benefits grow approximately 8% for each year you delay past your Full Retirement Age of 67. If your health and finances allow it, delaying is almost always the highest-value move for long-term income.

How much of my Social Security benefit is taxable?

Up to 85% of your Social Security benefit can be taxed at the federal level, depending on your combined income (AGI plus nontaxable interest plus half your Social Security). Singles with combined income above $34,000 and married couples above $44,000 face the 85% threshold. Strategic Roth conversions before you claim can help reduce this tax exposure.

What are the RMD rules for 2025 and 2026?

Required Minimum Distributions from traditional IRAs and 401(k)s must begin at age 73 under rules in place for both 2025 and 2026. Your RMD is calculated by dividing your prior year-end account balance by an IRS life-expectancy factor. Missing an RMD triggers a 25% excise tax on the amount you should have withdrawn.

How do I avoid Medicare IRMAA surcharges?

IRMAA surcharges are added to your Medicare Part B and Part D premiums when your income from two years prior exceeds about $106,000 (individual) or $212,000 (couple) in 2026. You can reduce your risk by managing large income events — like Roth conversions or property sales — carefully across tax years. If your income has since dropped due to a life event, you can appeal using IRS Form SSA-44.

What is the Medicare Part B premium for 2025 and 2026?

The standard Medicare Part B premium was $185.00 per month in 2025, with the 2026 premium rising modestly based on CMS adjustments. Higher-income beneficiaries pay additional IRMAA surcharges that can add hundreds of dollars per month on top of the standard premium. Part B premiums are automatically deducted from your Social Security benefit each month.