Social Security: Is There Really a Yearly Bonus Worth Thousands of Dollars?
Written by
Josephine Nesbit
Edited by
Gary Dudak
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Have you heard about the Social Security yearly bonus? Specifically, a rumored $16,728 bonus that had people wondering if it was true or not in 2024?
Sadly, there’s no real “bonus” that retirees who receive Social Security can collect. In actuality, this alleged bonus was just spin — another way of saying that there are ways you can boost your monthly Social Security benefits — but it’s not really a bonus.
The truth is that the Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount. However, there are indeed a few ways to create your own bonus by maximizing the amount you’re eligible to receive — which can result in thousands more annually.
Here below are a few ways to do it.
Increase Your Earnings
Social Security benefits are calculated based on the 35 years you earn the most. If you have years of low or no income, this is also factored into your calculation and decreases your qualifying amount.
According to the SSA, each year you work will replace a zero or low earnings year in your Social Security benefit calculation. This can help to increase your benefit amount.
However, there is a maximum amount of earnings used to calculate your retirement benefits. The Social Security wage base for 2025 is $176,100. This is the maximum amount of earnings that are subject to Social Security tax.
Wait Until Age 70 To Collect Benefits
Waiting to collect Social Security benefits until age 70 ensures you receive your maximum benefit amount. However, only a reported 10% of workers wait until then.
This is a big deal, as a 2022 paper published by the National Bureau of Economic Research found that the median loss in household lifetime discretionary spending totaled $182,370 for those who claim Social Security before age 70.
In other words, retirement benefits at 70 are 76% higher than benefits taken at age 62, adjusted for inflation.
Claim Spousal Benefits at Full Retirement Age
Married couples should be strategic about claiming spousal benefits. Unlike personal benefits, spousal benefits don’t increase if you delay payments past full retirement age (FRA).
FRA varies by birth year, but it’s usually age 66 or 67. The SSA says the spousal benefit amount can be based on their own earnings or up to half of the higher earner’s benefit, whichever is higher.
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