Steps to Increase Your Social Security Benefits

Delay Claiming Your Benefits

One of the most effective ways to increase your Social Security benefits is to delay claiming them. The SSA allows you to start collecting Social Security benefits at age 62, but if you wait until your full retirement age (FRA) or even up to age 70, your monthly benefits will increase.

• Full Retirement Age (FRA): Depending on your birth year, FRA is typically between 66 and 67. If you claim your benefits at FRA, you will receive 100% of your monthly benefit amount.
• Delayed Retirement Credits: If you wait beyond your FRA, you can earn delayed retirement credits, increasing your benefit by up to 8% per year until you reach age 70.

Work Longer and Earn More

The amount of Social Security benefits you receive is based on your average lifetime earnings. The more you earn, the higher your benefits will be. Here’s how to maximize your earnings:

• Work for 35 Years: Social Security calculates your benefits based on your 35 highest-earning years. If you work for fewer than 35 years, they’ll use zeros to fill in the gaps, lowering your benefit amount.
• Maximize Your Earnings: Try to earn as much as possible during your working years, especially in the years leading up to retirement. Social Security benefits are calculated using your 35 highest-earning years, so increasing your income during those years will boost your benefits.

Increase Your Earnings During Your High-Earning Years

To increase your benefits, it’s essential to focus on maximizing your income during your peak earning years. If possible, aim to:

• Take on Higher-Paying Jobs: Look for opportunities to increase your income by taking higher-paying positions or advancing in your career.
• Work Overtime or Take a Second Job: Additional income, even temporarily, can raise your lifetime average earnings and, consequently, your Social Security benefits.

Maximize Spousal Benefits

If you are married, you may be eligible for spousal benefits, which could increase your Social Security benefits. Here are some ways to take advantage of spousal benefits:

• Claim Spousal Benefits: If you’re married, you may be able to claim a benefit based on your spouse’s earnings. The amount you can receive is generally up to 50% of your spouse’s benefit if you claim at your FRA.
• Survivor Benefits: If your spouse passes away, you may be eligible for survivor benefits, which are based on your deceased spouse’s earnings. Survivor benefits can be higher than your own retirement benefits.

Work After You Start Collecting Benefits

If you choose to start collecting Social Security benefits before your FRA and continue working, your benefits may be reduced if your earnings exceed a certain limit. However, if you work after FRA, you can earn additional credits that may result in an increase in your benefits.

Apply for Social Security Benefits at the Right Time

The timing of your Social Security application plays a crucial role in determining how much you’ll receive. Here are a few things to consider:

• Wait Until FRA or Later: The longer you wait, the higher your benefits will be, so consider delaying your application until you’ve reached FRA or even up to age 70 to take full advantage of delayed retirement credits.
• Be Aware of Reductions for Early Claims: If you claim benefits early (before FRA), your monthly benefits will be permanently reduced.

Maximize Your Social Security Disability Benefits

If you're applying for Social Security Disability benefits, there are ways to maximize your benefits as well:

• Ensure Your Medical Evidence is Complete: Having thorough and complete medical documentation can help ensure you receive the maximum possible benefits for your condition.
• Appeal a Denial: If your claim for Social Security Disability is denied, don’t give up. You have the right to appeal the decision and may be able to increase your benefits through the appeals process.

Consider Social Security Taxation

Social Security benefits can be taxed depending on your income. If your income is low, you may not have to pay taxes on your benefits, but if your income exceeds certain thresholds, a portion of your benefits could be taxable. To keep more of your benefits, consider strategies for reducing your taxable income, such as contributing to tax-deferred retirement accounts like IRAs or 401(k)s.