For many Americans, Social Security is a vital part of retirement income. In fact, nearly 20% of retirees rely on it as their sole source of income, with benefits making up as much as 90% of their earnings.
The good news is that your Social Security payout isn’t set in stone. There are several strategies you can employ to increase the amount you receive, which can greatly enhance your financial situation in retirement.
It’s important to stay informed about updates to Social Security rules and consider working with a trusted financial advisor to make the most of your benefits. Here are five practical ways you can boost your Social Security check.
1. Work Longer to Increase Your Earnings Record
The amount of Social Security benefits you receive is based on your highest-earning 35 years. If you haven’t yet worked for 35 years, make sure to complete that requirement. Even if you have already worked for 35 years, consider continuing to work longer if possible. This is particularly helpful if your current income is higher than what you earned earlier in your career, as your recent years of earnings will replace lower-earning years in your benefit calculation.
2. Avoid Zero Earning Years
Remember, Social Security uses your 35 highest earning years to calculate benefits. If you had any years where you earned little or no income, such as during a career break or for further education, those years are counted as “zero” and will drag down your average. To avoid this, try to work long enough to replace those low-earning years with higher income years, ensuring you maximize your benefit calculation.
3. Delay Claiming Your Benefits
While you can start receiving Social Security benefits as early as age 62, doing so will result in a reduced monthly payment. If possible, delay claiming your benefits until you reach your full retirement age, which will increase your monthly payments. For even higher benefits, wait until you turn 70—delaying further can increase your payout by up to 8% each year.
If you’ve already started receiving benefits but think you claimed them too early, you can undo your claim within the first year. If more than 12 months have passed, however, you won’t be able to reverse your decision.
4. Consider Spousal Benefits
If your own earnings history is insufficient for a substantial benefit, you can claim spousal benefits instead, which can be as high as 50% of your spouse’s Social Security benefits. Similarly, if your own benefit is lower than the spousal benefit, you’re entitled to choose the higher of the two amounts.
5. Claim Survivor Benefits
If your spouse has passed away and you’re at least 60 years old (or 50 if you are disabled), you may be eligible to receive survivor benefits based on their work record. To qualify, you must have been married for at least 10 years. Survivor benefits can provide substantial financial support, especially in cases where the deceased spouse had earned a significant benefit.
By employing these strategies, you can potentially maximize your Social Security benefits and better secure your financial future in retirement. Always consider your personal circumstances and consult a professional before making major decisions about your benefits.
