Boost Your Social Security Benefits: Strategize for a Better Retirement

Social Security is an essential support for millions of retirees in the United States, often serving as their primary source of income.

Approximately 40% of beneficiaries aged 65 and older rely on these monthly payments for at least half of their income, with about 12% of men and 15% of women depending on it for 90% or more of their earnings, according to the Social Security Administration.

Despite the importance of these payments, the average retired worker only receives around $1,920 per month, making it challenging to sustain a comfortable lifestyle. Therefore, whether you need to rely heavily on your benefits or simply aim to enhance your retirement income, there are effective strategies to increase your Social Security payments.

1. Delay Claiming Your Benefits

One of the simplest ways to increase your Social Security benefit is by delaying your claim. If you file for benefits at your full retirement age, you will receive the full 100% of your benefit. If you choose to file sooner, starting at age 62, your benefits will be reduced. Conversely, if you opt to delay your claim until age 70, you will get your complete benefits plus an additional monthly increase. In fact, postponing benefits by just a few years can add hundreds of dollars to your monthly checks.

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For instance, if your full retirement age is 67 and you would receive $1,700 monthly at that age, claiming benefits at 62 results in a 30% reduction, leading to just $1,190 per month. Delaying until 70, however, means your monthly benefit would jump to $2,108—an increase of $918 per month compared to claiming at 62.

2. Work Longer Than 35 Years

The duration of your work history significantly influences your benefit calculation.

The Social Security Administration averages the highest earnings from any 35 years of your career, adjusting for inflation. This average decides your monthly benefit amount at full retirement age.

If you have worked fewer than 35 years, zeros will fill in for the years you were not employed, potentially lowering your benefit. Conversely, adding more years can lead to a higher monthly benefit, especially since your more recent employment may pay more than your earlier jobs.

3. Explore Additional Benefit Options

Retirement benefits represent just one category of Social Security payments. In certain scenarios, you may qualify for additional types of benefits.

For those who are married or were previously married to someone eligible for retirement or disability benefits, spousal or divorce benefits could be available. You can access up to 50% of your spouse or ex-spouse’s benefit at their full retirement age without impacting their payment.

If you already receive retirement benefits, you can only claim spousal or divorce benefits if their amount exceeds your current benefit. For example, if you’re receiving $1,500 monthly but are eligible for $2,000 in spousal benefits, you would receive the latter amount.

For those counting on Social Security for their retirement sustenance, every dollar matters. Small adjustments can lead to more significant benefits. By leveraging these strategies, you can boost your retirement income more than you might expect.

The $22,924 Social Security Bonus Most Retirees Overlook

Many Americans are lagging in their retirement savings, but some little-known “Social Security secrets” can enhance your retirement income. One straightforward method could provide you with up to an additional $22,924 each year. Learning how to maximize your Social Security benefits can lead to a more confident retirement, allowing for the peace of mind many seek. Click here to discover more about these strategies.

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