How to Increase Your Social Security Payments

ByAgkidzone Staff

Updated: Nov 16, 2024

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Social Security can be complicated, with various factors influencing your payout. While it can provide financial security, maximizing your benefits is key. Living on a fixed income isn’t always easy, so planning is important for a more secure future. Here are some effective ways to boost your Social Security payments.

Work for 35 Years

One of the simplest ways to increase your Social Security benefits is by working for at least 35 years. Your Social Security payment is calculated based on your highest-earning 35 years. If you have fewer than 35 years of work, those missing years count as zero income, which lowers your average earnings and, in turn, your benefits. If you had some low-earning years, continuing to work can replace those with higher-earning years. This strategy can make a noticeable difference in your payouts, provided your health allows you to keep working.

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Delay Claiming Your Benefits

Most people reach full retirement age between 66 and 67, depending on when they were born. But you don’t have to claim benefits as soon as you reach that age. By waiting until age 70, you can increase your payments significantly. For every year you delay past your full retirement age, your Social Security benefits grow by about 8%. This increase stops once you hit 70, so it’s a good idea to hold off claiming if you can afford to wait.

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Increase Your Earnings—But Know the Limits

Higher earnings during your working years mean higher Social Security payments. But it’s important to keep in mind that Social Security benefits can be taxed if your total income exceeds certain thresholds. For example, if you have other income sources or more than one person in your household is claiming benefits, up to 50% of your Social Security earnings could be taxed. Planning your earnings wisely is essential to get the most out of your benefits.

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Take Advantage of Spousal Benefits

If you’re married and have been for at least ten years, you have the option to claim benefits based on your own income or up to 50% of your spouse’s benefits—whichever is higher. This option can be particularly beneficial for those who were stay-at-home parents or had a lower income than their partner. The great thing is that claiming this benefit does not affect your spouse’s payments at all. However, this only works if your half-benefit is greater than what you’d get based on your own earnings.

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Check for Ex-Spousal Benefits

If you were married for at least ten years and have since divorced, you might still be eligible for benefits based on your ex-spouse’s earnings as long as you are not remarried. These benefits don’t affect what your ex-spouse receives. It’s a lesser-known fact, but if you qualify, it can provide significant financial relief. Just remember, if you get married again, you won’t be eligible for this benefit.

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Benefits for Children

If you have a dependent under the age of 19 when you retire, you may qualify for additional Social Security payments for them. This extra benefit can be up to half of your full retirement amount. This is especially helpful if you’re raising a grandchild or other dependent on a fixed income. The extra payment can make a big difference in covering the costs of raising a child.

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Consider Survivor Benefits

If one spouse passes away, the surviving spouse can claim the deceased partner’s benefits if they are higher than their own. This option allows the surviving partner to receive the higher benefit amount and can be an important factor to consider when planning. Ensuring that your personal benefits are maximized during your lifetime can help provide financial stability for your loved ones in the event of your passing.

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Stay Informed About Current Laws

Social Security rules change over time. For example, before 2015, one spouse could claim benefits early while the other delayed until age 70. This is no longer allowed, so it’s crucial to keep up with current regulations to avoid planning around outdated information. The Social Security Administration’s website is a reliable source for updates and changes to the laws.

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Keep Track of Cost-of-Living Adjustments

The Social Security Administration periodically adjusts benefits based on changes in the cost of living. These adjustments can increase your payments, but you might not always be notified directly. Staying informed about these adjustments through the Social Security Administration’s reports can help ensure you’re getting the highest payout possible.

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Consult an Expert

Lastly, it’s always wise to consult with a financial professional. An expert can help you navigate complex Social Security rules and ensure you have an effective plan for claiming your benefits. They can also keep you informed about possible changes to Social Security regulations in the future.

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