Social Security might be heading toward insolvency, but that doesn’t mean you can’t optimize your benefits.
While you can’t control how the system evolves, there are strategies you can employ to increase the amount of Social Security you receive when you retire.
By working for at least 35 years, timing your claim carefully, and coordinating with your spouse, you can boost your Social Security checks despite the program’s uncertainties.
1. Work at Least 35 Years
One of the most significant factors influencing your Social Security benefits is your work history. Social Security calculates your benefit based on your 35 highest-earning years, adjusted for inflation, to determine your average indexed monthly earnings (AIME).
If you work fewer than 35 years, any missing years count as zero-income years, which reduces your AIME and, ultimately, your benefit.
For example, if you consistently earn $50,000 per year for 35 years, your AIME would be $4,167. But if you only work 34 years, with one zero-income year, your AIME drops to $4,048.
That slight dip may not seem like much, but over the course of your retirement, it can significantly impact your lifetime benefits.
To maximize your Social Security, aim to stay in the workforce for at least 35 years, even if some of those years include part-time or lower-paying jobs.
2. Time Your Social Security Application Carefully
Another crucial factor is when you apply for Social Security. You can start claiming benefits as early as age 62, but doing so reduces your checks by up to 30% if you apply before your full retirement age (FRA), which is between 66 and 67 for most people.
On the flip side, if you delay claiming benefits beyond your FRA, your benefits increase by about 8% per year up to age 70, which can lead to a total boost of 32%.
While delaying benefits may seem like the obvious choice, it’s not always the best option for everyone. If you have health concerns or a shorter life expectancy, claiming earlier could provide more total benefits over your lifetime.
The key is to balance receiving larger checks with the total number of payments you’ll collect.
You can use the my Social Security account’s benefit estimator tool to see how your check size varies depending on when you claim, helping you choose the option that maximizes your lifetime benefits without putting your financial security at risk.
3. Coordinate With Your Spouse
If you’re married, coordinating Social Security claims with your spouse is vital.
Both spouses are dually eligible for Social Security, meaning they can claim either their own retirement benefits or a spousal benefit, which is up to 50% of their partner’s benefit at full retirement age.
The Social Security Administration will automatically give you the larger of the two, but you can only claim a spousal benefit if your partner has already applied for their own benefits.
For couples where both spouses have earned similar amounts throughout their careers, maximizing benefits usually involves delaying both claims as long as possible—unless health issues or financial constraints make this impractical.
However, when one spouse has significantly outearned the other, it might make more sense for the lower earner to claim benefits early, allowing the higher earner to delay their claim for larger checks later.
Once the higher-earning spouse files for benefits, the lower earner can switch to a spousal benefit if it’s larger than their own.
Strategizing with your spouse can make a significant difference in your combined lifetime benefits. Keep discussing your plans, stay flexible, and be prepared to adjust your strategy as your circumstances or the Social Security program change.
Though Social Security’s future may be uncertain, you can take steps to ensure you get the most out of the program.
By working at least 35 years, timing your application wisely, and coordinating with your spouse, you can boost your Social Security benefits and improve your financial outlook in retirement.
The key is to plan ahead and adapt to changes as they arise, giving you greater control over your retirement income.
FAQs
How does Social Security calculate my benefits?
It uses your 35 highest-earning years to calculate your AIME, which influences your benefit amount.
What is the full retirement age for Social Security?
It ranges between 66 and 67, depending on your birth year.
Can I claim Social Security benefits before age 66?
Yes, you can claim as early as age 62, but your benefits may be reduced by up to 30%.
What is a spousal benefit in Social Security?
A spousal benefit is up to 50% of your partner’s benefit at full retirement age, whichever is higher.
Should both spouses delay claiming Social Security?
It depends on their income levels, life expectancy, and financial needs.
