Maximizing Your Social Security Benefits: Strategies for a Secure Retirement

Millions of older Americans depend on Social Security as their primary income source.

As of October 2024, the average retired worker is receiving just $1,924.35 each month. This adds up to a yearly income of a little over $23,000, which may not be sufficient for many households.

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Unfortunately, those receiving Social Security won’t see a significant increase in 2025. The cost-of-living adjustment (COLA) will be just 2.5%, raising the average monthly benefit by only about $48.

On a positive note, there are steps you can take to increase your Social Security benefits in retirement. Here are several effective strategies.

1. Increase Your Income Before Retirement

Increasing your earnings now can lead to a better Social Security benefit later. Enhance your skills to achieve promotions or consider changing jobs for a higher salary.

Interestingly, earnings from gig work also contribute to your Social Security record. If you take on a second job, make sure to report your earnings, as this will boost your benefits in the long run.

2. Check Your Earnings Record

Your Social Security benefit is calculated based on your earnings record. Therefore, it’s essential to ensure that the Social Security Administration (SSA) has accurate information.

Create an account on the SSA’s website to view your earnings statement annually. This document summarizes your wages and estimates your future benefits. If you spot any inaccuracies, take the necessary steps to correct them by contacting the SSA.

3. Delay Your Social Security Filing

Waiting to file for Social Security can significantly increase your benefits. While you can start receiving benefits at age 62, doing so before your full retirement age will reduce your monthly payout.

For those born in 1960 or later, the full retirement age is 67. If you delay claiming your benefits past this age, they will grow by approximately 2/3 of 1% per month, equating to an 8% increase each year.

Keep in mind, once you reach 70, the benefits of delaying further cease. If you wait until age 70 to file, you could see a 24% increase in your monthly benefit compared to starting at 67.

While Social Security provides a baseline income in retirement, maximizing your benefits and supplementing them with savings is crucial for facing financial challenges post-career.

The $22,924 Social Security Bonus Most Retirees Miss

If you find yourself behind on retirement savings, you’re not alone. However, several little-known strategies may significantly boost your retirement income. One strategy can potentially add $22,924 to your yearly benefits. By learning how to optimize your Social Security payments, you can approach retirement with greater confidence. Click here to discover more about these helpful strategies.

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