Social Security benefits are a critical source of income for millions of retirees. However, many people don’t fully understand how to maximize their benefits, leaving money on the table. Whether you’re just starting to think about retirement or already planning for it, understanding how to make the most of your Social Security can ensure that you’re getting all you’re entitled to.
In this article, we’ll go over key strategies to help you maximize your Social Security benefits, including the best time to start claiming, how to factor in your work history, and tips for married couples.
What Is Social Security?
Social Security is a federal program that provides income for retirees, disabled individuals, and survivors of deceased workers. The amount you receive is based on your lifetime earnings, with the highest-earning years contributing more to your benefit calculation.
Your Social Security benefit is not a flat rate—it’s based on how much you’ve earned over your lifetime. The Social Security Administration (SSA) calculates your benefit using your average indexed monthly earnings (AIME), which is based on the 35 highest-earning years of your career.
Understanding this foundational concept can help you recognize the value of each year you work, and why waiting to claim benefits can sometimes be worth it.
How to Maximize Your Social Security Benefits
-
Delay Claiming Until Full Retirement Age (FRA)
You can start claiming Social Security benefits as early as age 62, but if you do, your monthly payments will be permanently reduced. The amount of the reduction depends on how early you claim. For example, if you start at age 62, your benefit will be reduced by about 25-30%.
The Full Retirement Age (FRA) is typically around 66 or 67, depending on when you were born. If you can afford to wait until you reach your FRA, you’ll receive the full amount of your benefits, with no reduction.
If you delay claiming until after your FRA, you’ll earn delayed retirement credits, which increase your benefit by about 8% per year up until age 70. In some cases, this strategy can significantly boost your monthly payment.
Example: If your monthly benefit at FRA is $2,000, waiting until age 70 could increase your monthly payment to $2,640—a 32% increase.
-
Work Longer to Increase Your AIME
The more you earn over your lifetime, the higher your Social Security benefits will be. Social Security uses your 35 highest-earning years to calculate your benefit, so working longer can boost your overall earnings and raise your AIME.
If you have any lower-earning years on your record, working longer and earning more can replace those lower years, raising your average and increasing your monthly payout.
Strategy: If you’re nearing retirement and haven’t worked for 35 years, you might consider working a few more years to replace lower-earning years on your record.
-
Consider Spousal Benefits
If you’re married, you may be eligible for spousal benefits, which allow one spouse to receive a benefit based on the other spouse’s work record. The spousal benefit is up to 50% of the higher-earning spouse’s benefit.
If you’re the lower earner, you may want to claim spousal benefits rather than your own benefits, especially if the higher-earning spouse delays claiming. In some cases, the spousal benefit could be higher than your own individual benefit.
Example: If your spouse’s monthly benefit is $2,500 and your own benefit is $1,200, you could receive $1,250 as a spousal benefit, which is 50% of your spouse’s benefit.
-
Maximize Survivor Benefits for Your Spouse
In the event of a spouse’s death, the surviving spouse is entitled to receive the higher of their own Social Security benefit or their deceased spouse’s benefit. If you are the lower-earning spouse, this can significantly increase your retirement income.
One strategy to maximize survivor benefits is for the lower-earning spouse to delay claiming their benefits until reaching FRA or beyond. This can increase both the survivor benefit and the amount of income that the surviving spouse will receive.
For the higher-earning spouse, delaying benefits can also mean a larger survivor benefit for the spouse left behind.
-
Understand the Impact of Working While Collecting Benefits
If you start claiming Social Security benefits before reaching your FRA, you may be subject to the Social Security earnings test. If you continue working and earning above a certain threshold, your benefits will be temporarily reduced. For 2025, the limit is $21,240 per year ($1,770 per month).
Once you reach FRA, there are no penalties for working and receiving benefits. In fact, if you work and earn more than you did during your previous high-earning years, your future benefits could be recalculated and increased.
Strategy: If you plan to work while collecting Social Security before reaching FRA, be aware of the earnings test limits and how they could impact your monthly benefits. If possible, consider waiting until FRA to claim if you intend to keep working.
-
Optimize the Timing for Married Couples
Married couples have several options when it comes to maximizing Social Security benefits. The timing of when each spouse claims benefits can greatly impact their overall retirement income.
One strategy is for one spouse (typically the higher earner) to delay claiming until age 70, while the other spouse claims a spousal benefit or their own benefit at FRA or earlier. This allows the higher earner to maximize their benefits through delayed retirement credits, while the lower earner can begin receiving income sooner.
For some couples, it may make sense for both spouses to delay claiming until age 70 to maximize the total Social Security payout over their lifetimes.
Additional Tips for Maximizing Your Benefits
-
Monitor Your Earnings Record: Make sure your earnings record is accurate. You can review your Social Security statement online to ensure that your earnings are correctly reported. Errors on your record could lead to lower benefits.
-
Consider Taxes: Keep in mind that Social Security benefits are subject to federal income tax. If you have other sources of retirement income, such as pensions or withdrawals from tax-deferred accounts, your benefits may be taxed at a higher rate. Plan for this by understanding your taxable income and considering tax-efficient withdrawal strategies.
-
Review Your Social Security Strategy Regularly: Social Security rules and your personal situation may change over time. Regularly review your claiming strategy and adjust it as needed to maximize your benefits.
Conclusion
Maximizing your Social Security benefits is a key component of a successful retirement strategy. By delaying your claim, working longer, considering spousal and survivor benefits, and understanding the tax implications, you can significantly increase your retirement income.
Start planning today to ensure that you get the most out of your Social Security benefits and enjoy a more comfortable, financially secure retirement.
