(upbeat music) (Jamie giggles) (upbeat music continues) - Hi, I'm Jamie, certified financial planner and member of Kansas City's Financial Planning Association.

Here were some tips to make the most out of your Social Security benefits.

(film roll rattling) Let's start with a short history lesson.

- This Social Security measure.

- When President Roosevelt rolled out the Social Security program in 1935, it was designed to pay benefits to people over age 65, but the life expectancy for a man in 1935 was 60 years old, and women only lived about four years longer on average.

So the program wasn't intended to pay a lot of people benefits for loan, if at all.

Nowadays, it's common for people to live 30 years or more after they start collecting Social Security, and there are fewer people in younger generations to pay into the system.

(upbeat music) Starting in 2021, the program had less money coming in than it was paying out.

To fix this, Congress could raise the retirement age, adjust benefits, increase payroll taxes, or close the wage gap to ensure sustainability.

While I can't predict the future of the Social Security program, I can offer you some quick facts to get the most out of your Social Security.

First, the earliest you can claim them is age 62, but waiting until full retirement age is a game changer.

Your full retirement age is the magic age, when you get full benefits without reduction.

If you wait until after you hit the mark, you can boost your monthly payments about 8% for each year that you wait, up to age 70.

Patients pays off big time.

Here's the thing, if you claim benefits before your full retirement age and still work, there's an earnings limit.

If you earn more, some of your benefits might be withheld.

But once you hit your full retirement age, you can work as much as you want and keep your full benefits without any reductions.

Now, let's talk taxes.

Federal income taxes on Social Security benefits are determined based on combined income.

If it falls below a certain amount, you are probably in the clear.

If it exceeds that amount, up to 85% of your benefits could be subject to federal income tax.

Now, if you are planning ahead for retirement and wondering if Social Security is enough to see you through, the short answer is no.

Financial planners generally recommend replacing 70 to 80% of pre-retirement income to sustain your lifestyle.

The average Social Security benefit is only about 1,800 a month.

The maximum benefit possible for someone who retires at full retirement age is about $3,600.

Basically, Social Security will only replace 40% of pre-retirement income for an average earner.

It's essential to save for retirement in other ways, like contributing to a 401K plan, IRA, or Roth IRA during your working years.

Moral of the story, Social Security will be a part of your retirement plan but not the only part.

If you wanna learn more about your Social Security benefits, check your full retirement age, or check the tax thresholds for your income level, visit ssa.gov.

Thanks so much for tuning in.

This video is just one part of "Age-Old Questions," a multimedia project from Kansas City PBS and Flatland, exploring important issues facing families with aging members.

If you have more questions about how to plan for retirement and beyond, visit kansascitypbs.org/ageoldquestions for additional resources and reporting about the state of aging.

(gentle upbeat music) - [Narrator] Produced with the generous support of the William T. Kemper Foundation, Commerce Bank, Trustee, Husch Blackwell, and by viewers like you.

Thank you.