For many retirees, a monthly Social Security check is an important part of their income and security. The Social Security Administration (SSA) provides these benefits, and there are ways to increase the amount you receive each month.
One lesser-known strategy can help you earn more than $700 extra each month. Let’s dive into how you can get the most out of your Social Security benefits.
Understanding Social Security Benefits
Why Social Security is Important
According to a 2024 Gallup study, 88% of retirees depend on their Social Security checks, and 60% use it as their main income. Even if you have other savings, making the most of your Social Security benefits is key to having a stable retirement.
The Big Choice: When to Start Collecting
When you decide to start collecting Social Security is crucial. Your monthly payment depends on your age when you begin claiming benefits. Once you start, your payment amount stays the same, except for yearly adjustments.
Claiming at your full retirement age (67 for those born in 1960 or later) gives you the full benefit based on your work history. If you wait until age 70, your benefit increases even more.
How Your Age Affects Your Benefits
Benefits of Waiting to Retire
If you start collecting benefits at age 62, your monthly payment can be up to 30% lower. On the other hand, waiting until age 70 can give you a bonus of at least 24% more each month on top of your full benefit.
For example, if you claim benefits at age 62, you might get around $1,298 per month. By waiting until age 70, this could increase to about $2,038 per month, which is a difference of $740.
When to Claim Benefits
Choosing when to claim Social Security depends on your financial situation and health. If you have enough savings and want to get the highest income possible, waiting until age 70 is a good option.
However, if you have health issues or need the money sooner, claiming earlier might be the better choice. Early filing allows you to start receiving benefits sooner, especially if you think you might not live into your 70s.
Maximizing Your Benefits: Personal Factors
Early vs. Delayed Filing
Filing early can be helpful if you have health problems or need the income right away. It can also be a smart move if your spouse qualifies for benefits and you want to boost your retirement income without making major financial sacrifices.
But if you wait to claim your benefits, your monthly income will be higher, which can make your retirement more comfortable.
Making the Right Choice
Deciding when to claim Social Security is a personal choice based on your health, financial needs, and how long you expect to live. Understanding these factors and their impact on your benefits will help you make the best decision for your retirement.
Maximizing your Social Security benefits is important for a secure and enjoyable retirement. By understanding how your retirement age affects your benefits,
you can make better decisions to increase your monthly income. Whether you choose to claim early or wait, planning ahead will help you enjoy your retirement with financial peace of mind.
What is Social Security?
Social Security is a government program that provides monthly payments to retirees, people with disabilities, and survivors of deceased workers.
When should I start collecting Social Security benefits?
You can start collecting benefits at age 62, but waiting until your full retirement age (67) or even age 70 can increase your monthly payments.
How does waiting to retire affect my benefits?
Waiting to start benefits increases your monthly payments. For example, delaying until age 70 can add at least 24% more to your payment.
Can I claim Social Security benefits if I continue to work?
Yes, you can still work while receiving Social Security benefits, but your benefits might be reduced if you earn above a certain limit before reaching full retirement age.
What factors should I consider when deciding when to claim benefits?
Consider your health, financial needs, and how long you expect to live. These factors will help you decide whether to claim benefits early or wait.