Although you should not rely on Social Security benefits as your main source of income in the United States, it could be an important part of your retirement earnings.
As you can see, there is a considerable difference between getting $1,465 or $2,119. In fact, the second payment is about $654 higher than the first one. When inflation and soaring prices make millions of retirees run out of money, it would be wise to consider this useful tip.
There are different ways to boost your Social Security payments in retirement. However, there is one that most people can do, and that is to decide when they can file for retirement benefits. In fact, waiting to file until you reach Full Retirement Age can boost your benefits by about 44%.
Should you file for Social Security at 62 or at Full Retirement Age?
If you apply for Social Security at 62, you are getting a reduction of about 30%. That is so much money that not many workers can afford this big bite. While filing at 62 can be negative for your finances, filing at Full Retirement Age will give you 100% of your benefits.
Hence, there will be no reductions but no rewards either. If your future retirement check will be approximately $1,465 at 62, filing at 67 will be the key to getting $2,119.
Bear in mind that if you opted for filing at the age of 70, you could receive a Social Security payment worth $2,634 at this age. Of course, as long as you pay the necessary taxes.
Other ways to increase Social Security benefits without filing late
Filing later than 62 is not the only way to increase your future retirement benefits. For example, if you just work for ten years, you may be eligible for Social Security but you will get a really low payment in most cases.
Nevertheless, if you work for a minimum of 35 years, that is the number of years of work you need not to get a reduction. For example, if you work for 34 years, one year will count as $0 in earnings because SSA uses 35 years in its calcualtions.
Increasing your wages is another great way to boost your retirement benefit payments. So, to get the largest benefit payment of $5,108 in 2025 you must:
- file at 70
- work for 35 years
- earn the taxable maximum for 35 years
- have jobs covered by SSA
For many retirees, Social Security benefits are a significant part of their income. However, most people are not aware that with a little planning, they can increase their Social Security payments by a substantial amount—potentially by as much as 44%. If your current Social Security benefit is around $1,465 per month, it is possible to boost that payment to $2,119.
That’s a difference of over $650 per month, which can make a significant impact on your financial security in retirement. So, how can you achieve this? Here are the key strategies to increase your Social Security payments by 44%.
1. Delay Your Social Security Claiming Age
One of the most effective ways to increase your Social Security benefit is by delaying the age at which you begin to collect benefits. Social Security allows you to start receiving benefits as early as age 62, but if you begin your benefits at this age, your monthly payment will be permanently reduced.
The Full Retirement Age (FRA) is typically between 66 and 67, depending on your birth year. However, if you can afford to delay claiming your Social Security benefits until after your FRA, you will receive a delayed retirement credit of about 8% per year until you reach age 70.
For example:
- If your monthly benefit is $1,465 at your FRA (age 66 or 67), delaying until age 70 will increase your payment by 32% (8% per year for 4 years).
- By age 70, your monthly payment could increase to $1,939 (32% higher than $1,465).
But you can go beyond that. If your monthly payment is already close to the $1,465 starting amount, further delaying could push it even higher. Your benefits could climb by up to 44% (for example, from $1,465 to $2,119), depending on the specific numbers and your claiming strategy.
2. Work Longer and Earn More
Social Security calculates your monthly benefit based on your highest 35 years of earnings. If you have years with little or no income in your earning history, they are factored into your calculation, which can lower your benefit amount.
If you continue to work for a few more years, you could replace some of the lower-earning years with higher-earning years, potentially increasing your monthly Social Security benefit. This is particularly important for individuals who have had periods of lower income or unemployment during their career.
By working longer and earning more, you can increase your average lifetime earnings, which directly raises the amount you are eligible to receive in benefits.
3. Maximize Your Earnings Before Retirement
To receive the highest possible Social Security benefit, you’ll need to ensure you earn the maximum taxable income for as many years as possible before you retire. For 2024, the Social Security Administration (SSA) taxes earnings up to $160,200. Any earnings above this amount are not subject to Social Security tax and won’t count toward your future benefits.
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The higher your lifetime earnings, the higher your benefit will be. If you are still working and approaching retirement, try to maximize your income in the years leading up to your retirement to help ensure that your benefit will be as high as possible.
4. Consider Spousal Benefits
If you are married, you may be eligible for spousal benefits, which could be another way to increase your household’s total Social Security payment. The spousal benefit allows you to claim up to 50% of your spouse’s benefit if it’s higher than your own. This can be particularly beneficial if one spouse earned significantly more than the other during their working years.
For example, if your spouse’s monthly benefit is $2,119 and you are entitled to a smaller amount based on your own work history, you could receive a spousal benefit that brings your total benefit up to $1,059.50 (50% of your spouse’s benefit).
Spousal benefits can increase your family’s total Social Security income and potentially give you a much higher benefit than if you relied only on your own work history.
5. Use a Strategy for Divorced Individuals
If you are divorced, you may still be eligible for Social Security benefits based on your ex-spouse’s earnings history. The key requirement is that your marriage must have lasted at least 10 years, and you must be currently unmarried. You can claim up to 50% of your ex-spouse’s benefit, which can result in a significant increase if your ex-spouse’s benefits are higher than your own.
Even if your ex-spouse has remarried, you can still claim benefits based on their earnings if you meet the above conditions. This strategy can be a game-changer for divorced individuals who may not have earned enough on their own to qualify for a large Social Security benefit.
6. Use the “File and Suspend” Strategy (If Applicable)
While the “file and suspend” strategy was phased out in 2016 for new claims, some individuals who were already using this strategy before the rule changes may still benefit from it. The strategy allowed one spouse to file for Social Security benefits at full retirement age, but suspend their benefits to allow them to accrue delayed retirement credits while the other spouse claimed a spousal benefit. This strategy is only applicable to people who were already using it before the changes.
Conclusion
Increasing your Social Security payments by 44% is absolutely possible with a combination of strategies. By delaying your claiming age, working longer, maximizing your earnings, and taking advantage of spousal or divorced spouse benefits, you can significantly increase your monthly Social Security payment.
While it requires planning and a bit of patience, the financial rewards in retirement can be substantial. Taking these steps now can help ensure that you have the resources you need to enjoy a more secure and comfortable retirement.