Social Security is an essential part of many people’s retirement plans. The amount you receive from Social Security can depend on how much you’ve earned over your lifetime, the age at which you begin taking benefits, and how long you wait before you start receiving payments. If you want to increase your Social Security benefits, there are several strategies you can follow to potentially boost your future monthly payment by a significant amount.
Understanding Your Social Security Benefits
Social Security benefits are based on the income you earned during your career. The higher your lifetime earnings, the higher your Social Security payments will be. The Social Security Administration (SSA) looks at your 35 highest-earning years to calculate your benefits. If you worked for fewer than 35 years, the SSA will use zero for the years you didn’t work.
The SSA uses a formula to decide how much you should receive each month. However, the amount you get can be affected by the age you start receiving benefits. If you wait until your full retirement age (FRA), you will get the full amount based on your earnings. But if you start earlier, you may get less than the full amount. If you wait until after your FRA, you could earn a bigger payment.
How Waiting to Claim Can Help
One of the simplest ways to increase your Social Security payments is by delaying when you start receiving benefits. For every year you delay your benefits after your FRA (up until age 70), your monthly payment will increase. This is known as the “delayed retirement credit,” and it can boost your payment by up to 8% for each year you wait.
If your FRA is 66, and you decide to wait until age 70 to begin receiving benefits, you can increase your monthly Social Security payment by 32%. For example, if you were originally going to receive $1,465 a month at 66, waiting until 70 could raise your payment to $2,119. That’s an increase of 44%!
Maximize Your Earnings Over Your Career
To boost your Social Security payment, it’s important to maximize your income throughout your working years. Social Security looks at your highest-earning years, so the more you earn, the higher your benefits will be. Here are a few ways to ensure you’re earning as much as possible:
- Earn More: Try to earn a higher income by asking for raises, getting promotions, or finding higher-paying jobs.
- Work Longer: The more years you work, the more your highest-earning years will count. If you have fewer than 35 years of earnings, your payments could be lower because the SSA will count years with no earnings as zeros.
- Stay Employed: Avoid retiring early if you don’t have to. Working longer means a bigger Social Security check.
| Topic | Details |
|---|---|
| Increase Social Security Payments | You can raise your Social Security payment by delaying benefits, maximizing earnings, working longer, and using spousal benefits. |
| Delaying Benefits Until Age 70 | If you wait until age 70 to start Social Security, your monthly payment will increase by up to 8% for each year you delay past full retirement age. |
| Effect of Income on Payments | The more you earn during your career, the higher your Social Security payments will be. Payments are based on your 35 highest-earning years. |
| Spousal Benefits | If your spouse’s Social Security benefits are higher than yours, you can claim a portion of their benefits to increase your monthly payment. |
| Working Longer to Boost Benefits | Working more years can raise your benefits, especially by replacing lower-earning years with higher-earning ones. |
| Increase by Delaying Past Full Retirement Age | Delaying Social Security benefits until age 70 can increase your payments by up to 32% if your full retirement age is 66, or up to 44% in some cases. |
| Lacking 35 Years of Work | If you don’t have 35 years of earnings, the SSA will count zero for the missing years, lowering your benefits. Working longer can help increase payments. |
| Survivor Benefits | If your spouse passes away, you may be eligible for survivor benefits, which could increase your Social Security payment. |
| Working While Collecting Social Security | You can work and collect Social Security, but if you’re under full retirement age and earn over a certain amount, your benefits may be temporarily reduced. |
| Other Ways to Boost Retirement Income | In addition to Social Security, saving in retirement accounts like 401(k)s or IRAs can help boost your income during retirement. |
Consider Spousal Benefits
If you’re married, you may be eligible for spousal benefits, which can help increase your payment. The SSA allows you to claim a portion of your spouse’s Social Security benefits if they are higher than yours. In some cases, this can raise your monthly payments. If your spouse passes away, you may be eligible for survivor benefits, which could also increase your monthly Social Security check.
Other Strategies to Boost Your Benefits
- Work in a High-Earning Job: If possible, look for a job with higher pay or consider a career change to increase your lifetime earnings.
- Invest for Retirement: Aside from Social Security, having other retirement savings like 401(k)s or IRAs can give you a better financial future when you retire.
- Stay Healthy: Living longer means you can collect more Social Security payments. While this isn’t always in your control, taking care of your health can help you enjoy your benefits for a longer time.
FAQs
How can I increase my Social Security payments?
You can increase your Social Security payments by delaying when you start receiving benefits, maximizing your lifetime earnings, working longer, and taking advantage of spousal benefits.
What happens if I wait until age 70 to start Social Security?
If you wait until age 70 to start receiving Social Security benefits, your monthly payment can increase by up to 8% for each year you delay past your full retirement age.
How does my income affect my Social Security payment?
The more you earn during your career, the higher your Social Security payment will be. The Social Security Administration (SSA) calculates your benefits based on your 35 highest-earning years.
What are spousal benefits and how can they help?
If you’re married, you can claim a portion of your spouse’s Social Security benefits if they are higher than yours. This can help increase your monthly payment.
Can I increase my Social Security payment by working longer?
Yes, working for more years can raise your benefits, especially if you replace lower-earning years with higher-earning years.
Increasing your Social Security payments can have a big impact on your retirement lifestyle. By waiting to claim your benefits, maximizing your earnings during your working years, and taking advantage of spousal benefits, you can potentially raise your monthly payments by a significant amount. Waiting until age 70 could boost your benefits by as much as 44%. It’s important to plan your Social Security strategy carefully, considering your health, work plans, and financial needs.
With the right approach, you could improve your financial security in retirement.
