6 strategies to maximize your social security benefits

Social Security is a vital income source for most people aged 65 and over, but the average monthly benefit may not cover rising living costs. Here are some strategies to maximize your benefits:

1. Work for at least 35 years

Social Security benefits are calculated based on your 35 highest-earning years. Working fewer than 35 years means zeros will be factored into your benefit calculation, potentially lowering your monthly payment.

2. Extend your career

If possible, continue working beyond your peak earning years. Delaying benefits until full retirement age increases your monthly check. For example, retiring at 62 instead of 67 can reduce benefits by up to 30%. Delaying until age 70 can increase benefits by up to 124% for those born in 1960 or later.

3. Verify your earnings record

Regularly check your earnings record with the Social Security Administration (SSA) to ensure accuracy. Report any discrepancies promptly to avoid affecting your benefit amount.

4. File for benefits at the right time

To maximize benefits, consider delaying your claim until age 70. Benefits increase for each month you delay up to this age. However, apply for Medicare at age 65 to avoid higher medical insurance costs later.

5. Consider your spouse’s benefit

If both you and your spouse were born before January 2, 1954, you can choose to apply for one benefit now and delay the other to earn delayed credits. For those born after this date, you must apply for both benefits simultaneously and receive the higher of the two.

More details on this can be found at https://www.ssa.gov/pubs/EN-05-10035.pdf.

6. Include family members

Children who are unmarried can get up to half your benefit if they are younger than 18, 18-19 years old and a full-time student no higher than grade 12 or are 18 or older and have a qualifying disability that began before the age of 22.

Survivor benefits are paid to widows, widowers, and dependents of eligible workers.

Maximizing Social Security benefits involves thoughtful planning. By understanding these strategies, you can enhance your financial security during retirement. Remember, every year of work counts toward a better future.

Disclaimer: Memorial Planning is not a financial advisor. The content in this article is for informational purposes only and should not be considered financial advice.

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