4 Easy Ways to Boost Your Social Security Benefits

In January, the average Social Security retiree benefit was $2,074.53. On an annual basis, that’s close to $25,000.

That may be a decent amount of money in its own right, especially if you’re able to combine it with withdrawals from a retirement account. But if you want more Social Security, you should know that there are ways to get it. Here are four fairly easy strategies you can use to line up larger monthly checks for retirement.

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1. Spend more years in the workforce

To qualify for Social Security, you need to earn 40 work credits in your lifetime. And you can receive a maximum of four per year.

This means you have to spend at least 10 years in the labor force in some capacity to get benefits based on your earnings. But if you want larger Social Security checks in retirement, aim for a 35-year career instead.

Social Security’s benefits formula takes your 35 highest-paid years of wages into account when calculating your monthly payments. So if you were planning to retire after, say, 30 years of work, you should know that putting in an extra five years should lead to larger checks for your retirement.

2. Grow your income

Boosting your income could do a lot of great things for you – make it easier to max out your IRA contributions, pay off debt, and meet other savings goals. It could also lead to more Social Security in retirement.

The monthly benefits you get from Social Security are based on your personal wage history. So if you’re able to grow your income by chasing promotions or working side hustles, you can set yourself up for larger checks later on.

That said, Social Security does set a wage cap each year that limits how much income is taxed to fund the program. Earnings beyond that cap also don’t count toward future benefits. So when we talk about boosting wages to get more Social Security, that advice doesn’t apply once you’ve reached the wage cap.

This year’s wage cap is $184,500. So if you earn $175,000 through your primary job and work a side hustle that pays you $9,500, that extra income could lead to larger retirement checks.

If you earn $185,000 at your main job, you can of course pursue a side hustle to boost your finances. But that extra income won’t count toward Social Security (at least not this year based on the current wage cap).

3. Delay your claim

You’re entitled to receive your monthly Social Security checks without a reduction at full retirement age, which is 67 if you were born in 1960 or later. But if you put off your claim, you can collect delayed retirement credits that boost your benefits on a permanent basis.

Delayed retirement credits stop accruing once you turn 70. But if your full retirement age is 67, you have an opportunity to score up to a 24% increase in your monthly checks by waiting.

4. Make sure your wage history is accurate

We said earlier that your monthly Social Security benefits in retirement are based on your personal wage history. So it’s important to make sure that history is recorded correctly.

If the Social Security Administration (SSA) doesn’t have a record of all of your income, it could lead to smaller benefits. So it’s important to check up on your wage history.

To do so, create an account at SSA.gov and then follow the prompts to review your earnings record. You should be able to see what income the SSA has on file for you on a yearly basis.

Compare that information with your personal records to make sure everything matches up. If you find an error, you’ll need to contact the SSA so they can correct it.

The more Social Security you’re able to collect in retirement, the less financial stress you might have. Use these strategies to lock in larger monthly benefits so you have more leeway to cover your costs without worry.