How can I increase my social security benefits?
Increasing your Social Security benefits is a crucial step towards ensuring a comfortable retirement. With the rising cost of living and the uncertainty of the economy, maximizing your Social Security benefits can make a significant difference in your financial stability during your golden years. In this article, we will explore various strategies to help you increase your Social Security benefits and secure a more prosperous retirement.
1. Delay claiming your benefits
One of the most effective ways to increase your Social Security benefits is by delaying when you start receiving them. The longer you wait, the higher your monthly benefit will be. For every year you delay claiming your benefits beyond your full retirement age (FRA), your benefit amount increases by approximately 8% per year. This increase is based on the assumption that you will live longer and require more income in your later years.
2. Maximize your earnings
Your Social Security benefits are calculated based on your average earnings during your highest-earning 35 years of work. Therefore, maximizing your earnings throughout your career can significantly boost your Social Security benefits. Consider pursuing higher-paying job opportunities, taking on additional responsibilities, or working longer hours to increase your earnings.
3. Work while receiving benefits
If you are already receiving Social Security benefits and continue to work, you may be able to increase your benefits. However, there are certain income limits that may affect how much you can earn before your benefits are reduced. As of 2021, if you are under your FRA, you can earn up to $18,960 per year without any reduction in your benefits. Once you reach your FRA, there are no income limits, and you can continue working without any impact on your Social Security benefits.
4. Spousal benefits
If you are married, you may be eligible for spousal benefits based on your spouse’s earnings. If your spouse has a higher Social Security benefit than you do, you can receive a spousal benefit that is equal to half of their benefit. Additionally, if your spouse passes away, you may be eligible for survivor benefits, which can be up to 100% of their benefit.
5. Social Security claiming strategies
Understanding the various claiming strategies for Social Security can help you maximize your benefits. Some common strategies include:
– File and suspend: This allows you to file for your benefits and then suspend them until a later age, allowing your benefit to grow.
– File a restricted application: If you are married, you can file a restricted application for spousal benefits while allowing your own benefit to continue growing.
– Delayed retirement credits: By delaying your benefits until age 70, you can receive a higher monthly benefit.
By implementing these strategies, you can increase your Social Security benefits and secure a more comfortable retirement. It’s important to plan ahead and consider your unique circumstances when determining the best approach to maximize your benefits. Consult with a financial advisor or Social Security expert to help you navigate the complexities of Social Security and ensure you are making the most of your benefits.
