Social Security Benefits: 5 Ways To Make Your Monthly Check Bigger
Written by
Vance Cariaga
Edited by
Daria Uhlig
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Ideally, Social Security benefits will supplement your retirement income by giving you an extra financial cushion to pay bills and fund your lifestyle. They’re not intended to be the only or even main source of income once you’ve left the workforce. Unfortunately, a large percentage of U.S. seniors rely heavily or entirely on Social Security in retirement.
What’s more, many younger Americans who are still working don’t have adequate retirement savings, meaning they might also depend heavily on Social Security one day. For these Americans, boosting their eventual Social Security check takes on added importance.
If you want to take full advantage of Social Security benefits when you retire, the time to start strategizing is now. Here are five ways you can ensure that your monthly check is bigger.
Work as Long as You Can
You need at least 10 years of work, or 40 credits, to qualify for Social Security retirement benefits, according to the Social Security Administration. But that’s the minimum you can earn. The agency bases the amount of your benefit on your highest 35 years of earnings. If you don’t have 35 years of earnings by the time you apply for benefits, your benefit amount will be lower than it would be if you worked 35 years.
Years with no earnings count as zeroes in the benefit calculation, so you need at least 35 years of earnings to ensure a bigger payment. Working more than 35 years will kick your benefit even higher — especially if you move into a higher income bracket later in your career.
Increase Your Income
If you find yourself running into lean times in terms of income, you can still contribute more to your Social Security benefits by finding other sources of income that will boost your overall earnings. For example, you might work overtime at your current job or apply for a higher-paying position.
Beyond that, you can work a side gig either for another employer or as a freelancer. If it’s the latter, make sure you pay estimated taxes each quarter so your freelance income contributes to your Social Security income.
Wait Until Full Retirement Age To Claim Benefits
Your full retirement age is when you are entitled to the full Social Security benefits you are due based on your work record and the amount of taxes you paid into the system. Currently, the FRA is either 66 or 67, depending on your birth year. For anyone born in 1960 or later, full retirement benefits are payable at age 67.
You can claim Social Security as early as age 62, but doing so means you will get a smaller check. The longer you wait, the bigger your monthly payment. If at all possible, you should wait at least until FRA to collect.
Better Yet, Wait Until Age 70 To Collect
Waiting until age 70 to claim Social Security will guarantee the biggest check possible because after that age there is no more advantage to waiting. Research shows that waiting until age 70 to collect instead of collecting at age 62 increases your total monthly payment by more than three-quarters.
Review Your Social Security Statements
You can access a Social Security statementonline by opening a my Social Security account. For workers 60 and older who don’t have a my Social Security account, the SSA mails Social Security statements three months before your birthday. These statements provide estimates of your monthly retirement benefit based on your yearly earnings record.
Take the time to check your statement to make sure the SSA has the correct information. If you find that your income has been underreported, contact the agency to correct any errors and ensure you get the full benefits you are due.
More From GOBankingRates
