Social Security benefits play a crucial role in providing financial stability for retirees, but many people find that their monthly payments are not enough to cover all their expenses. If your monthly check is currently around $1465, you might be wondering if there’s a way to increase it.
The good news is: yes, there is a way to raise your Social Security income, and it’s easier than you might think. This article will reveal the little-known trick that could boost your monthly Social Security check to over $2000.
Understanding Your Social Security Benefits
First, it’s important to understand how Social Security benefits are calculated. The amount you receive is based on your 35 highest-earning years of work, and your benefit is determined by your average lifetime earnings. When you reach full retirement age (FRA), you can begin receiving Social Security benefits, but the amount you receive can vary depending on when you start claiming them.
Currently, the average Social Security payment for retirees is about $1465 per month, but many people are surprised to learn that there are strategies to increase this amount. Whether you’re just starting to receive benefits or are looking to maximize your future payments, these strategies can make a significant difference.
The Secret: Delaying Your Social Security Benefits
One of the most effective ways to increase your Social Security income is by delaying the start of your benefits. While you can begin receiving Social Security at age 62, waiting until your full retirement age (typically 66 or 67, depending on your birth year) or even beyond can significantly increase the monthly amount you receive.
For each year you delay your Social Security benefits past your FRA, your monthly payment increases by about 8%. This increase continues until you reach age 70. So, if you wait until age 70 to start collecting Social Security, you can increase your monthly check by up to 32% compared to what you would have received at your FRA.
Example: How Delaying Can Raise Your Benefits
Let’s break this down with an example. Suppose your full retirement age is 66, and you are eligible for $1465 per month at that age. If you decide to delay your benefits until age 70, your monthly check would increase by 8% each year you wait. By age 70, this would result in a boost of about 32%, which would raise your monthly payment to approximately $1932.
That’s a $467 increase per month! And if you wait even longer, the increase will continue. In some cases, your Social Security check could easily exceed $2000 per month if you’re able to delay it long enough.
Other Ways to Increase Your Social Security Earnings
While delaying benefits is one of the most powerful ways to raise your monthly Social Security check, there are other strategies you can consider to increase your earnings as well:
- Work Longer and Earn More Since Social Security benefits are calculated based on your highest-earning 35 years, working longer and earning more can significantly increase your benefits. If you’ve had lower-earning years, working a few more years at a higher salary can replace those years and boost your benefit.
- Maximize Your Earnings During Your Career The amount you earn each year affects your Social Security benefits. To maximize your future benefits, it’s important to earn the maximum taxable income, which is the highest amount of income subject to Social Security taxes. In 2024, this amount is $160,200. Earning this amount or as close to it as possible throughout your career can help increase your Social Security payments when you retire.
- Consider Spousal Benefits If you are married, you might be eligible for spousal benefits, which can increase your total Social Security income. A spouse can receive up to 50% of the other spouse’s benefit if it’s higher than their own. If one spouse earned significantly more during their career, this strategy can provide a substantial increase in the total household benefits.
- Claim Survivor Benefits (If Applicable) If your spouse passes away and they had a higher Social Security benefit than you, you may be eligible to claim their benefit. This can increase your monthly check significantly, sometimes over $2000 depending on the deceased spouse’s earnings.
The Bottom Line: Be Strategic with Your Social Security
While you might not be able to control how much you’ve earned throughout your life, you do have some control over when and how you begin receiving Social Security benefits. By delaying your benefits until age 70, working longer, and maximizing your career earnings, you can raise your Social Security income from $1465 to over $2000 per month.
The key to unlocking this secret is patience and planning. While it may seem tempting to start taking your benefits at the earliest possible age, delaying could be one of the best financial decisions you make, ensuring you have a larger monthly check to support your retirement years.
If you’re unsure whether delaying benefits or other strategies are the right choice for you, consider consulting with a financial advisor. They can help you evaluate your situation and choose the best path forward to maximize your Social Security benefits.
