README

Purpose

Comprehensive research and analysis of Social Security retirement benefits, claiming strategies, and retirement income planning for married couples with focus on optimizing lifetime benefits and survivor protection.

actual-retirement-calculation.md - Detailed analysis of retirement income needs with scenario comparisons showing multiple claiming strategies for a married couple targeting retirement at 65
married-couple-strategy-analysis.md - In-depth Social Security strategy guide for high-earner and medium-earner married couples, comparing claiming ages and survivor benefits
retirement-at-65-high-earner-analysis.md - Analysis of benefits for high earners (age 41, 15+ years at $100k+) targeting retirement at 65, including break-even analysis
retirement-calculator-spreadsheet.md - Complete Excel/Google Sheets calculator template with 5 sheets for retirement planning, year-by-year projections, and scenario comparisons
retirement-portfolio-calculator.md - Mathematical foundation and formulas for calculating starting retirement assets needed, including present value calculations and sensitivity analysis
generate_retirement_calculator.py - Python script for automating retirement calculations and simulations
retirement_calculator.xlsx - Functional Excel spreadsheet with integrated formulas for retirement planning

Key Findings

Full Retirement Age (FRA) for those born after 1960 is age 67, not 65
Claiming at 65 results in a permanent 13.3% reduction in benefits
Waiting until 70 adds 8% per year in delayed retirement credits (24% total increase from FRA)
Maximum 2025 benefit at age 70: ~$5,108/month for high earners

Critical Insights

Social Security often covers retirement needs: For couples with combined SS ~71,136/year and target retirement expenses of $55,453/year, Social Security alone can exceed income needs
Survivor benefits matter significantly: Delaying higher-earning spouse’s benefits to age 70 increases survivor benefit for remaining spouse by 520,000 over 20 years
Split strategies are optimal: Having higher-earning spouse delay to 70 while lower-earning spouse claims at 67 provides best balance of survivor protection and household income
Portfolio can remain untouched: With adequate Social Security income, investment portfolio can continue growing through retirement

Optimal Claiming Strategy for Couples

Recommended: Husband delays to 70, Wife claims at 67

Household income ages 70+: 81,552/year (vs. 71,136 if both at 67)
Survivor benefit if husband dies: 53,820/year (vs. $27,732 if both at 67)
Lifetime benefits: ~1.8M for both at 67)
Only requires 3 years of portfolio draws (ages 67-70)

Retirement Income Planning

Starting portfolio needed (current plan): $583,396
- Assumes: 500k legacy goal
Alternative strategies:
- Both wait to 67: 10,140/year long-term)
- Husband to 70, Wife at 67: $704,393 needed (maximizes survivor protection)
Tax optimization: Up to 85% of Social Security benefits can be taxable at higher income levels

Couple Profile (Primary Case Study)

Both age 41 (born ~1984)
Husband: 15+ years earning $100k+, total 25+ years work history
Wife: 25 years earning ~$60k average
Expected benefits at FRA:
- Husband: 4,018/month (48,216/year)
- Wife: 27,732/year)
- Combined: 6,329/month

Quick Start

For Couples Planning Retirement

Verify your full retirement age based on birth year (age 67 for post-1960 births)
Create My Social Security accounts (ssa.gov) to get official benefit estimates
Use the retirement calculator spreadsheet to model your specific scenarios
Compare claiming strategies: Both at 67 vs. Husband to 70, Wife at 67
Factor in other income sources (pensions, rental income) to reduce portfolio needs

For Immediate Planning

Confirm Social Security estimates with official SSA calculator
Calculate required portfolio income: Retirement expenses - SS benefits - other income
Use retirement portfolio calculator formula: PV = Annual Withdrawal × Annuity Factor + Legacy PV
Model 2-3 scenario comparisons to identify optimal strategy
Review and update annually as benefits estimates change

Mathematical Foundation

Starting Pool = PV of Annuity + PV of Legacy

PV of Annuity = Annual Withdrawal × [(1 - (1 + r)^-n) / r]
PV of Legacy = Legacy Goal / (1 + r)^n

Where:
- r = annual return rate (6% = 0.06)
- n = number of years in retirement

Excel Quick Formula

=PV(0.06, 35, -35754, -500000, 0)
Result: $583,396 (starting pool needed)

Sources & Tools

Official Resources

Social Security Administration: https://www.ssa.gov
My Social Security Account: https://www.ssa.gov/myaccount/
SSA Benefit Calculators: https://www.ssa.gov/benefits/calculators/
Retirement Planner: https://www.ssa.gov/benefits/retirement/planner/

Bend Points: 7,391 (adjust annually)
Maximum Wage Base: $176,100 (maximum taxable earnings)
Employee Tax Rate: 6.2% (employer pays 6.2%)
Maximum Monthly Benefit (age 70): $5,108
Cost of Living Adjustment (COLA): Typically 2-3% annually

Calculators Provided

Spreadsheet-based calculator with 5 worksheets for comprehensive planning
Python script for automated retirement simulations
Excel workbook with pre-built formulas and scenario comparison
Manual calculation methods with step-by-step examples

tesla-model-s - Asset retention analysis and financial planning
retirement-planning - General retirement investment and portfolio strategy

Planning Considerations

Life Expectancy Factors

Average male at 65: ~84 years
Average female at 65: ~86-87 years
Probability at least one spouse alive to 90: 55%
Probability at least one spouse alive to 95: 25%

Tax Planning Opportunities

Roth conversions before retirement (reduces future taxable income)
Strategic withdrawal sequencing: Taxable accounts before SS depends
Qualified Charitable Distributions (QCDs) after age 70.5 (reduces AGI)
Tax-loss harvesting in taxable accounts
State income tax planning (move to TX, FL, NV, WA, etc. if possible)

Common Mistakes to Avoid

Claiming too early (62-65) without analysis
Ignoring survivor benefits (can be 520k difference)
Both spouses claiming together (missing split strategy benefits)
Not verifying earnings record for errors
Forgetting that Social Security is heavily taxed (up to 85%)
Not accounting for inflation in retirement planning

Action Plan

Immediate (Within 6 Months)

✓ Create My Social Security accounts (both spouses)
✓ Review annual Social Security statements for accuracy
✓ Verify current retirement savings and projections
✓ Calculate specific income needs in retirement

Near-Term (1-2 Years)

✓ Model different claiming scenarios with actual benefit estimates
✓ Evaluate health status and longevity expectations
✓ Review and optimize retirement expenses
✓ Plan Roth conversions during final working years

Long-Term (5-10 Years Before Retirement)

✓ Finalize claiming strategy (decide 1-2 years before)
✓ Confirm portfolio adequacy for gap years
✓ Review rental property and other income sources
✓ Plan healthcare bridge to Medicare at 65

Key Metrics & Assumptions

Metric	Value
Annual Retirement Expenses	$89,672
Required Gross Income (25% tax rate)	$119,562
Social Security Income (both at 67)	71,136
Required Portfolio Income	35,754
Starting Portfolio Needed	704,393
Legacy Goal	$500,000
Expected Return Rate	6%
Retirement Period	35 years
Inflation Rate	2.5%

Summary

This research provides comprehensive guidance for optimizing Social Security benefits for retirement. Key takeaway: Strategic claiming decisions can increase lifetime benefits by 520,000 compared to claiming early. For married couples, delaying the higher-earning spouse’s benefits while the lower-earning spouse claims at FRA typically provides the optimal balance of household income, survivor protection, and long-term financial security.

Last updated: November 24, 2025

Note: All calculations based on 2025 Social Security bend points and assumptions. Benefits will adjust annually for COLA (Cost of Living Adjustment). Consult with a financial advisor for personalized recommendations.