Retire on Social Security Only

Federal SS Tax Bracket Table

The IRS determines how much of your SS benefit is taxable based on "provisional income" — your AGI plus half your SS benefits plus tax-exempt interest. Source: IRS.gov "Is My Social Security Taxable?"

Source: IRS.gov — accessed May 30, 2026. Taxable percentages as of the most recent IRS guidance.

6 Strategies to Maximize Social Security Income

1. #1: Minimize Provisional Income to Reduce SS Taxation

   Your marginal tax rate on SS is determined by provisional income, not just SS itself. Strategies to reduce it: defer capital gains realizations to years when your SS income is high; use municipal bonds instead of taxable bonds (no tax-exempt interest to add to provisional income); manage your AGI carefully in the year you claim SS. The goal is keeping provisional income below the 85% threshold — even $1,000 of reduced AGI can save $85/year in federal SS tax.
2. #2: Move to a State That Doesn't Tax SS

   In 2026, 38 states (plus D.C.) exempt Social Security from state income tax entirely. The 8 states that do tax SS: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Missouri, Kansas, and Nebraska have fully phased out their SS tax. If you live in Colorado, Minnesota, or Connecticut and retire there, you could pay $400–$800/year in additional state SS tax. A mid-cost relocation (even within a retirement community) can pay for itself in under 3 years. Source: Tax Foundation 2026 State Tax Competitiveness Index
3. #3: Execute Roth Conversions Before Claiming (Ages 60–70)

   The years between age 60 and your SS claiming age (62–70) represent a tax planning window. Converting traditional IRA funds to Roth at 12–22% marginal rates reduces future RMDs, which lowers provisional income during your SS years. This is most powerful if you expect tax rates to rise, have a long retirement runway, or expect large required minimum distributions that would push you into the 85% SS taxation bracket. Even $30,000–$50,000 in conversions can reduce your lifetime SS tax burden by $5,000–$15,000. Source: IRS.gov Roth Conversion Guidance
4. #4: Coordinate Spousal and Survivor Claiming Strategies

   Married couples have a claiming flexibility that singles don't: the ability to claim a reduced spousal benefit at 62 while the higher earner delays to 70. The highest earner should delay claiming to 70 to earn the maximum 132% Delayed Retirement Credit — this creates the largest possible survivor benefit. Upon the first spouse's death, the survivor receives the higher of the two benefits, not an average. A divorced spouse of at least 10 years can claim on the ex's record independently. Source: SSA.gov Spousal Benefits
5. #5: Optimize Your Claiming Age for Your Health and Longevity

   The break-even for delaying from 62 to 70 is approximately age 79–80. If you have a family history of longevity (parents or grandparents who lived past 85), waiting to 70 maximizes your total lifetime benefit and provides the highest annual inflation-adjusted income. If your health indicates a shorter lifespan, claiming at 62 at a reduced rate (70–76% of your full benefit) and investing the difference may produce better results. The Social Security Quick Calculator at ssa.gov/oact/quickcalc lets you model all three claiming ages side-by-side.
6. #6: Cover the Healthcare Gap Before SS Is Sufficient

   If you're retiring before age 65 (before Medicare eligibility), you'll need bridge coverage — either via COBRA (up to 18 months, expensive), a marketplace plan (income-based subsidies available), or a spouse's employer plan. The gap between age 62 (early SS) and 65 (Medicare) is the highest-risk period for healthcare cost exposure. Budget $400–$700/month for marketplace coverage in this window. At 65, Medicare Part B costs $185/month (CMS.gov, 2026) and Medigap Plan G runs $150–$200/month — budget $385–$465/month total for healthcare post-65.

What to Do If SS Isn't Quite Enough

If your projected SS benefit falls below $2,000/month and you've identified a gap, the following tools can close it without taking on investment risk:

• Annuity Calculator — model whether a small SPIA (single premium immediate annuity) purchased at 60 can supplement SS income for ages 70–85 when healthcare costs peak.
• Retirement Budget Planner — run a detailed budget to identify exactly where your SS income falls short and which expenses can be adjusted.
• Retirement Readiness Score — 5-dimension assessment of savings rate, income replacement, healthcare, location, and longevity risk.
• Retire on $2,000/month guide — the companion piece to this page, covering the budget side of SS-only retirement.