Ways to Potentially Increase Your Social Security Benefit

Quick answer

• Work longer: Each additional year you work past your full retirement age can increase your monthly benefit.
• Delay claiming benefits: Waiting to claim past your full retirement age, up to age 70, significantly boosts your monthly payout.
• Earn more over your career: Higher earnings result in higher Social Security taxes paid, which can lead to a larger benefit calculation.
• Consider a “spousal benefit” if applicable: If married, you may be eligible for a spousal benefit based on your partner’s earnings record.
• Review your earnings record annually: Ensure accuracy to prevent errors that could reduce your benefit.
• Understand the earnings test if you claim early: If you claim before full retirement age and continue to work, your benefits may be temporarily reduced.

Who this is for

• Individuals nearing retirement age who want to maximize their Social Security income.
• Workers who may have had periods of lower earnings and want to understand how to improve their future benefit.
• Couples planning their retirement finances and considering how Social Security benefits interact.

What to check first (before you act)

Your Social Security Earnings Record

This is the foundational document for your Social Security benefits. It details your reported earnings throughout your working life, which directly impacts your benefit calculation.

• What to do: Visit the Social Security Administration (SSA) website to create an account and access your “Social Security Statement.” Review it for accuracy, especially for recent years.
• What “good” looks like: Your earnings record is accurate and reflects all your reported income for every year you’ve worked.
• Common mistake and how to avoid it: Not checking your record until you’re ready to claim. You might miss errors that are difficult to correct years later. Avoid this by checking it at least once every few years, and especially after a significant job change or if you believe an employer didn’t report your earnings correctly.

Your Full Retirement Age (FRA) and Benefit Estimate

Your FRA is the age at which you can receive your full Social Security benefit without any reduction. The SSA provides estimates of your future benefits based on your current earnings history and different claiming ages.

• What to do: Use the SSA’s online tools to find your specific FRA and get personalized benefit estimates for claiming at different ages (early, FRA, and age 70).
• What “good” looks like: You have a clear understanding of your FRA and realistic estimates of your monthly benefit at various claiming ages.
• Common mistake and how to avoid it: Assuming your FRA is 65. The FRA has changed based on your birth year. Avoid this by looking up your specific FRA on the SSA website.

Your Current Financial Situation and Retirement Goals

Understanding your overall financial picture is crucial for making informed decisions about when to claim Social Security. Your benefit amount is just one piece of your retirement income puzzle.

• What to do: Assess your savings, pensions, other income sources, and anticipated retirement expenses. Determine how much you need to live comfortably in retirement and how Social Security fits into that plan.
• What “good” looks like: You have a clear picture of your retirement income needs and how your Social Security benefit, at different claiming ages, will contribute to meeting those needs.
• Common mistake and how to avoid it: Relying solely on Social Security for all retirement income. This can lead to a significant shortfall if your benefit is lower than expected or if you need to claim early. Avoid this by diversifying your retirement income streams and understanding the limitations of Social Security as a sole source of funds.

Step-by-step: Boosting Your Social Security Benefit

1. Access Your Social Security Statement:

• What to do: Go to the official Social Security Administration website and create or log in to your “my Social Security” account. Download or review your latest Social Security Statement.
• What “good” looks like: You have successfully accessed your statement and can see your earnings history and estimated future benefits.
• Common mistake and how to avoid it: Forgetting your login credentials or not knowing where to find the statement. Avoid this by writing down your login information in a secure place and bookmarking the SSA website.

2. Verify Your Earnings Record Accuracy:

• What to do: Carefully examine each year on your earnings record. Ensure the reported wages match your W-2s or self-employment tax filings.
• What “good” looks like: All reported earnings are accurate and complete for every year you’ve worked.
• Common mistake and how to avoid it: Overlooking small discrepancies or assuming everything is correct. Avoid this by comparing your statement to your actual pay stubs or tax returns for at least the last few years. If you find an error, contact the SSA immediately with supporting documentation.

3. Determine Your Full Retirement Age (FRA):

• What to do: Find your specific FRA based on your birth year. This is the age at which you are entitled to 100% of your calculated benefit.
• What “good” looks like: You know your FRA and understand that claiming before this age results in a permanently reduced benefit.
• Common mistake and how to avoid it: Assuming your FRA is 65. This is no longer true for most people. Avoid this by using the SSA’s FRA finder tool.

4. Understand Benefit Estimates at Different Ages:

• What to do: Use the “my Social Security” account tools or the SSA’s online calculators to see estimated monthly benefits if you claim at age 62 (earliest), your FRA, and age 70 (latest).
• What “good” looks like: You have a clear comparison of how much your monthly benefit changes based on when you start claiming.
• Common mistake and how to avoid it: Only looking at the estimate for your FRA. This ignores the significant impact of delaying or claiming early. Avoid this by comparing all available claiming age estimates.

5. Evaluate Your Retirement Income Needs:

• What to do: Create a realistic budget for your expected retirement expenses, considering housing, healthcare, food, travel, and other lifestyle choices.
• What “good” looks like: You have a solid understanding of how much income you’ll need monthly and annually to maintain your desired lifestyle.
• Common mistake and how to avoid it: Underestimating retirement expenses, especially healthcare costs. Avoid this by researching average retirement expenses and factoring in potential medical needs.

6. Consider Working Longer (Past FRA):

• What to do: If possible, continue working beyond your FRA. Each year you delay claiming past FRA (up to age 70) increases your benefit by a set percentage.
• What “good” looks like: You are able to continue working and delaying benefits, allowing your monthly payment to grow.
• Common mistake and how to avoid it: Not realizing the benefit of working past FRA. Your benefit increases substantially each year you delay. Avoid this by understanding the delayed retirement credits.

7. Explore the “Spousal Benefit” Option (If Applicable):

• What to do: If you are married, divorced, or widowed, and your spouse (or former spouse) has a higher earnings record than you, you may be eligible for a spousal benefit. This can be up to 50% of your spouse’s primary insurance amount.
• What “good” looks like: You and your spouse have analyzed your individual benefits and determined if a spousal benefit offers a higher combined income.
• Common mistake and how to avoid it: Not understanding that you can claim a spousal benefit even if your spouse is still working, as long as they are receiving their own benefits. Also, be aware that claiming a spousal benefit before your own FRA can result in a reduction.

8. Delay Claiming Benefits Until Age 70:

• What to do: If your finances allow and you are healthy, delaying your claim until age 70 maximizes your monthly Social Security income.
• What “good” looks like: You have successfully delayed claiming benefits until age 70, securing the highest possible monthly payment for life.
• Common mistake and how to avoid it: Claiming early simply because you can, without considering the long-term financial impact. Avoid this by creating a claiming strategy that aligns with your financial needs and health.

9. Maximize Earnings While Working:

• What to do: Focus on career growth, seeking promotions, and potentially higher-paying jobs throughout your working life.
• What “good” looks like: Your earnings over your career are as high as possible, contributing to a higher average indexed monthly earnings (AIME) calculation.
• Common mistake and how to avoid it: Not pursuing opportunities for higher pay or promotions. Avoid this by actively managing your career and seeking out roles that offer increased compensation.

10. Understand the Earnings Test (If Claiming Early):

• What to do: If you claim benefits before your FRA and continue to work, your benefits may be temporarily reduced if your earnings exceed a certain limit.
• What “good” looks like: You are aware of the earnings limit and how it might affect your benefit amount if you claim early and continue to work.
• Common mistake and how to avoid it: Not knowing about the earnings test and being surprised by a reduced benefit check. Avoid this by checking the SSA’s current earnings limits and understanding how they apply to your situation. Note that the withheld benefits are often added back to your monthly payment once you reach FRA, but the initial reduction can impact immediate cash flow.

Common Mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
<strong>Not checking your Social Security earnings record annually.</strong>	Errors in your earnings history can lead to a permanently lower benefit amount when you retire.	Create a “my Social Security” account and review your statement at least once a year, or after any significant job change, to ensure accuracy.
<strong>Claiming Social Security benefits before your Full Retirement Age (FRA).</strong>	Your monthly benefit will be permanently reduced for the rest of your life.	Carefully calculate your financial needs and explore all options before claiming early. Delaying to FRA or age 70 offers a significantly higher monthly payout.
<strong>Not understanding your Full Retirement Age (FRA).</strong>	You might incorrectly assume your FRA is 65, leading to a misunderstanding of when you are eligible for full benefits.	Use the SSA’s online tools to determine your exact FRA based on your birth year.
<strong>Ignoring the impact of working past your FRA.</strong>	You miss out on substantial increases to your monthly benefit due to delayed retirement credits.	Understand that each year you delay claiming past FRA (up to age 70) increases your benefit by a fixed percentage. Consider working longer if financially feasible.
<strong>Not considering spousal or survivor benefits.</strong>	You may be leaving money on the table if your partner has a higher earnings record or if you are widowed.	Discuss your options with your spouse and review SSA guidelines for spousal and survivor benefits to see if they apply to your situation.
<strong>Overlooking the “earnings test” if you claim early and work.</strong>	Your current benefits may be temporarily withheld if your earnings exceed the annual limit, impacting cash flow.	Be aware of the current earnings limits if you plan to claim before FRA and continue working. The withheld amounts are usually added back later, but it affects immediate income.
<strong>Not maximizing earnings throughout your career.</strong>	Lower lifetime earnings translate directly to a lower Social Security benefit calculation.	Focus on career advancement, skill development, and seeking higher-paying opportunities throughout your working years to increase your average indexed monthly earnings (AIME).
<strong>Not having a coordinated claiming strategy with a spouse.</strong>	One spouse might claim too early, or you might miss opportunities for a higher combined benefit.	Work together to determine the optimal claiming strategy for both individuals, considering ages, earnings records, and financial needs.
<strong>Assuming Social Security will be your sole source of retirement income.</strong>	You risk a significant income shortfall and a reduced standard of living in retirement.	Diversify your retirement income streams through savings, investments, pensions, and other sources. Social Security is a supplement, not a complete solution.

Decision rules (simple if/then)

• If your primary goal is to maximize your monthly income for life, then delay claiming Social Security until age 70 because you will receive the highest possible benefit amount due to delayed retirement credits.
• If you have significant debt with high interest rates and need immediate cash flow, then consider claiming Social Security early (at age 62) if necessary, but understand your benefit will be permanently reduced.
• If your spouse has a much higher earnings record than you and you are approaching retirement, then investigate spousal benefits because you may be able to receive a higher monthly payment based on their record.
• If you discover errors in your Social Security earnings record, then contact the SSA immediately with supporting documentation because correcting these errors can increase your future benefit.
• If you are in good health and your financial situation allows, and you want the largest possible monthly benefit, then continue working past your Full Retirement Age because each additional year increases your benefit.
• If you are planning to claim Social Security early (before FRA) and continue working, then understand the earnings test because your benefits may be temporarily reduced if your income exceeds a certain threshold.
• If your current income is insufficient to cover essential expenses, and you have no other immediate options, then claiming Social Security early might be a necessary step, but be aware of the permanent reduction in benefits.
• If your goal is to provide for a surviving spouse, then understand that claiming later can result in a higher survivor benefit for them, as it’s based on your benefit amount.
• If you have had periods of low earnings or no earnings, then focus on maximizing your earnings in your remaining working years because this can help improve your average indexed monthly earnings (AIME) calculation.
• If you are self-employed, then ensure you are accurately reporting all your income and paying self-employment taxes because these contributions determine your Social Security credits.
• If you are eligible for both your own benefit and a spousal benefit, then the SSA will pay you the higher of the two, so understand both calculations.

FAQ

Q: When is the earliest I can start receiving Social Security benefits?

A: You can start receiving Social Security benefits as early as age 62. However, claiming at this age results in a permanently reduced monthly benefit compared to claiming at your Full Retirement Age.

Q: How much does my benefit decrease if I claim early?

A: The reduction depends on how early you claim. For each month you claim before your Full Retirement Age, your benefit is reduced by a small percentage. The reduction is more significant the earlier you claim.

Q: What is the maximum age I can delay my Social Security benefits?

A: You can delay claiming benefits up to age 70. For each year you delay past your Full Retirement Age, your benefit increases by a set percentage, known as delayed retirement credits.

Q: How do higher earnings affect my Social Security benefit?

A: Social Security benefits are calculated based on your highest 35 years of earnings. Higher earnings over your career generally lead to a higher average indexed monthly earnings (AIME), resulting in a larger monthly benefit.

Q: What if my spouse has a higher Social Security benefit than I do?

A: If you are married and your spouse has a higher earnings record, you may be eligible for a “spousal benefit.” This benefit can be up to 50% of your spouse’s primary insurance amount, and you would receive the higher of your own benefit or the spousal benefit.

Q: Does working past my Full Retirement Age increase my benefit?

A: Yes, absolutely. For every year you delay claiming benefits past your Full Retirement Age, up to age 70, your monthly benefit increases due to delayed retirement credits.

Q: How do I check if my Social Security earnings record is accurate?

A: You can create a “my Social Security” account on the Social Security Administration’s website to access your Social Security Statement. This statement details your reported earnings and allows you to check for any discrepancies.

What this page does NOT cover (and where to go next)

• Specific investment strategies for retirement savings: This page focuses on Social Security benefits. For retirement savings, explore options like 401(k)s, IRAs, and other investment vehicles.
• Detailed tax implications of Social Security benefits: While benefits can be taxable, the specifics depend on your total income. Consult a tax professional for personalized advice.
• Medicare and healthcare planning in retirement: Social Security is a financial component; healthcare is another major retirement consideration. Research Medicare enrollment and long-term care options.
• Estate planning and wills: This article does not delve into what happens to your benefits or assets after your passing. Consider consulting an estate planning attorney.
• Government pension offset (GPO) and windfall elimination provision (WEP): These are specific rules that can affect individuals who also receive a pension from government employment not covered by Social Security. Research these provisions if they may apply to you.