Work for Longer or at a Higher Income

Social Security benefits are based on your work history and the income you report to the SSA. The more you work and the higher your income during your working years, the higher your benefits will be when you retire or apply for Social Security Disability.

• Increase Your Earnings: Social Security uses your 35 highest-earning years to calculate your benefit amount. If you have years of low earnings on your record, working for a few more years at a higher income could replace those low-income years and raise your benefit amount.
• Delay Claiming Benefits: You can begin claiming Social Security benefits as early as age 62, but if you wait until your full retirement age (FRA) or beyond, your monthly benefits will be higher. Social Security offers an 8% annual increase in benefits for each year you delay past your FRA, up until age 70.

Claim Social Security at the Right Time

The age at which you begin claiming Social Security can have a significant impact on your benefit amount.

• Full Retirement Age (FRA): Your FRA is between 66 and 67, depending on your birth year. If you claim at FRA, you will receive your full benefit amount.
• Early vs. Delayed Benefits: If you claim benefits before your FRA, your benefits will be reduced. However, if you wait until after your FRA (up to age 70), you will receive delayed retirement credits that can significantly increase your benefits by up to 32% more than the standard amount.
• Spousal Benefits: If you are married, you may be eligible for spousal benefits. If your spouse’s benefits are higher than yours, you can claim a percentage of their Social Security benefits. If you’re divorced, you may also be eligible for spousal benefits, depending on the length of your marriage.
  
  

Consider a Spouse’s or Ex-Spouse’s Benefits

If you are married or divorced, you may be able to receive a portion of your spouse’s or ex-spouse’s benefits. This can increase your total Social Security benefits.

• Spousal Benefits: If your spouse’s benefit is higher than yours, you can claim up to 50% of their benefit at full retirement age, rather than taking your own benefits at a reduced rate.
• Ex-Spousal Benefits: If you were married for at least 10 years, you may be able to claim spousal benefits based on your ex-spouse’s record, even if they have remarried, provided you meet other eligibility criteria.

Work While Receiving Benefits

In some cases, continuing to work while receiving Social Security benefits can help increase your total benefit amount.

• For Retirement Benefits: If you are under your FRA and work while receiving Social Security benefits, your benefits may be temporarily reduced depending on how much you earn. However, once you reach your FRA, your benefits will be recalculated, and the SSA may increase your monthly payments to account for the months you didn’t receive full benefits.
• For Disability Benefits: If you are receiving Social Security Disability Insurance (SSDI) benefits, working while receiving benefits may help you transition to full retirement benefits. Keep in mind that you must still meet SSA’s requirements for substantial gainful activity (SGA), which is the income threshold you can earn while still being considered disabled.

Use Social Security’s Online Tools

Social Security has several online tools that can help you track your benefits and optimize your claims.

• mySocialSecurity Account: By creating a mySocialSecurity account on the SSA website, you can monitor your earnings record, check your eligibility for benefits, and see an estimate of your future Social Security benefits. This tool can also help you plan when the best time to claim benefits is based on your individual situation.
• Benefits Planner: The SSA’s Online Benefits Planner allows you to estimate your monthly benefits based on your earnings and the age at which you plan to claim benefits. You can use this tool to calculate how delaying your benefits could affect the amount you receive.
  

Apply for Other Social Security Programs or Benefits

There are several Social Security programs designed to provide extra financial support if you qualify for certain conditions.

• Supplemental Security Income (SSI): If you are disabled, aged, or blind with limited income and resources, you might qualify for SSI, which provides additional financial assistance to those in need.
• Veterans Benefits: If you’re a veteran, there are programs through the Veterans Administration (VA) that may help supplement your Social Security benefits.

Avoid Early Withdrawals from Retirement Accounts

If you have other retirement savings (like a 401(k) or IRA), be mindful of how early withdrawals can affect your overall financial situation. Withdrawing from retirement accounts early could reduce your income, which in turn might reduce the amount of Social Security benefits you receive, especially if your benefits are tied to your earnings history.

Seek Professional Advice

A financial advisor or Social Security expert can help you make the most of your Social Security benefits. Consulting with a professional can help you:

• Understand when to claim benefits for maximum payouts.
• Optimize your work history and earnings to increase your future benefits.
• Plan for tax implications if your benefits are taxable.