If you’re like most Americans planning for retirement, you’re probably counting on Social Security to help cover your expenses. But did you know there’s a little-known strategy that could potentially add as much as $18,384 per year to your benefits? Many retirees and soon-to-be retirees are missing out on this bonus simply because they don’t understand how the system works.
In this article, we’ll break down what this Social Security bonus is, how you may qualify, and the exact steps you can take to maximize your retirement income. Whether you’re already collecting benefits or planning, understanding these details could mean the difference between just getting by and enjoying a more comfortable retirement.
What Is the $18,384 Social Security Bonus?
The phrase “$18,384 Social Security bonus” refers to a potential increase in annual benefits that many retirees leave on the table by claiming Social Security too early or not maximizing their benefits.
Here’s how it works: Social Security benefits are calculated based on your highest 35 years of earnings and the age at which you claim. If you claim benefits at your full retirement age (FRA), you get your standard benefit amount. But if you delay claiming benefits beyond your FRA — up to age 70 — you can increase your benefit by 8% per year.
For example, let’s say your full retirement age benefit is $1,600 per month. If you wait to claim benefits until age 70, you can increase that amount by 32% (four years × 8%), raising your monthly benefit to around $2,112. That’s a yearly difference of $6,144. If both you and your spouse apply this strategy, the combined household increase could reach up to $12,288 per year or more.
In some cases, when factoring in spousal benefits, survivor benefits, and other strategies, the combined lifetime increase can exceed $18,384 per year — the so-called “Social Security bonus” people are missing.
Why Are So Many Missing Out?
Unfortunately, many Americans claim Social Security benefits as soon as they turn 62, the earliest possible age. According to data from the Social Security Administration (SSA), nearly one-third of people start claiming at 62, locking in permanently reduced benefits.
Here’s what happens when you claim early:
- If your full retirement age is 67, but you claim at 62, you’ll receive about 30% less in monthly benefits.
- If your FRA is 66, you’ll face about a 25% reduction.
This early claiming permanently reduces your monthly checks — and over a 20- or 30-year retirement, that adds up to a huge loss.
On the other hand, waiting until 70 boosts your monthly payments by up to 32%. That increase lasts for the rest of your life and adjusts upward with annual cost-of-living adjustments (COLAs).
How to Unlock the Social Security Bonus
If you want to capture this extra money, here are the key steps to follow:
Understand Your Full Retirement Age (FRA)
Your FRA depends on the year you were born. For most people retiring today, it’s between 66 and 67. You can check your specific FRA on the SSA website or your Social Security statement.
Delay Benefits Until Age 70 (If Possible)
By waiting past your FRA, you gain delayed retirement credits — an 8% increase for each year you wait, up to age 70. This can significantly boost your lifetime benefits.
Coordinate With Your Spouse
If you’re married, it’s essential to plan together. Often, it makes sense for the higher-earning spouse to delay benefits until 70, maximizing survivor benefits later. Meanwhile, the lower-earning spouse might claim earlier, depending on your household needs.
Consider Your Health and Life Expectancy
Delaying only makes sense if you expect to live long enough to make up for the years of missed payments. Generally, if you live past your late 70s or early 80s, you come out ahead by waiting.
Maximize Earnings Before Retirement
Remember, Social Security uses your highest 35 years of earnings. If you have some lower-earning years (or zeros) on your record, working a few more years at a higher salary can replace those low years and increase your benefit.
Stay Informed About Claiming Strategies
Beyond delaying, there are other advanced strategies, like restricted applications, file-and-suspend (no longer available but grandfathered for some), and maximizing spousal or survivor benefits. Talking to a financial planner familiar with Social Security rules can help you craft the best plan.
Common Myths That Cost You Money
Many people miss out on Social Security bonuses because they fall for myths, such as:
- “Social Security will run out of money soon, so I better claim now.”
→ While the Social Security trust fund faces long-term funding challenges, even if no reforms are made, retirees will still receive about 75%–80% of promised benefits after 2034. - “It’s better to get money early before I die.”
→ If you live a long life, claiming early actually reduces your total lifetime benefits. - “I can’t work and collect Social Security.”
→ You can work while collecting Social Security, especially after FRA, without any benefit reduction. Before FRA, you face temporary earnings limits, but these do not reduce your ultimate benefit amount.
Final Takeaway
If you’re approaching retirement, don’t rush to claim your Social Security benefits at the earliest possible moment. By planning carefully, delaying when possible, and using advanced claiming strategies, you could unlock an additional $18,384 or more in annual income — for life.
This extra income can make a major difference, whether it helps cover rising healthcare costs, lets you travel more, or simply gives you peace of mind.
Before you make any decisions, review your Social Security statement, consult the SSA’s online calculators, and, if possible, speak with a qualified financial advisor. Remember: Social Security is one of the few guaranteed, inflation-adjusted sources of income you’ll have in retirement. Make sure you’re getting everything you’ve earned.