Transcript

You’ve heard that delaying Social Security can give you a bigger benefit. True, but what if that bigger check also triggers higher taxes and Medicare costs?

I’m Hunter Brockway with Boca Retirement Strategies, and today we’ll uncover the silent tax bomb hiding inside your Social Security timing—and how to diffuse it before it blows up your plan. At Boca Retirement Strategies, we help retirees make smart, tax-efficient income decisions so they can enjoy retirement without anxiety.

Let’s talk about how your claiming age affects not just your benefit, but everything around it.

Most people don’t realize up to 85% of their Social Security can be taxable. It’s based on your combined income: your AGI plus non-taxable interest plus one-half of your Social Security. If that number crosses $44,000 for joint filers or $34,000 for single filers, you’re likely paying tax on most of your benefit (based on 2025 numbers). Nothing like paying taxes on money you already paid taxes on when you earned it. The IRS really knows how to recycle.

Point number two: why timing matters. When you delay claiming, your monthly check rises 8% per year, but so does your combined income once you start taking it. If you wait too long without planning, your first big Social Security check could collide with RMDs and investment income and push you into a higher tax bracket and even trigger IRMAA.

We had a client who waited until age 70 to claim. They got a great benefit, but when RMDs started, their tax bill jumped by $9,000. So bigger checks aren’t always better if they land on top of other income and cause an even bigger tax bill.

If this video got you thinking about your own retirement planning, I’d like to offer you something to help you see the bigger picture. We’ve created a tax-smart comprehensive retirement workbook for pre-retirees and retirees. If there’s one thing I’ve noticed in my years of working with individuals, it’s that there’s always at least one aspect in the planning process where they say, “Hm, I haven’t thought about that before.” No matter how smart they are or how much they’ve saved, something comes up—whether it be they realize they can spend more than they thought they could, they realize their tax bill is going to be higher in retirement, or they are going to leave money on the table with their current Social Security claiming strategy.

This workbook is designed to help you walk through the most critical areas of retirement planning with action steps, false beliefs, and areas for you to input your own reflection items. You can download the workbook by going to the link below in the description. If you have any issues with that link, send us an email at contact@bocaretirement.com.

If you get through this workbook and you’d like your responses reviewed or have any questions, I’m happy to have that conversation with you, too. As always, this is no cost, no obligation, and no pressure. Best of luck.

Let’s talk about a few ways to neutralize this tax bomb.

Number one: coordinate claim timing with other income. If you retire at 64 but delay Social Security to 67, consider withdrawing from IRAs strategically in those gap years while your tax bracket is lower.

Number two: consider doing partial Roth conversions before claiming. Converting early reduces future taxable income and combined income when Social Security starts.

Number three: track IRMAA thresholds every year. A few thousand can bump Medicare premiums hundreds of dollars per month.

If you want to see exactly how your Social Security decision fits into your retirement plan, you can download our free Tax Smart Retirement Workbook in the description below.

Let’s have a quick recap.

Number one: up to 85% of Social Security can be taxed. Number two: timing your claim affects both benefits and taxes. Number three: plan ahead with Roth conversions and withdrawal coordination. By doing this, you can maximize income without handing more money back to Uncle Sam. And he already has enough friends.

I’m Hunter Brockway with Boca Retirement Strategies. Thank you for watching. Enjoy your successful retirement with more money, less stress, and fewer taxes.