8 Strategies to Enhance Social Security Benefits

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8 Ways to Enhance Social Security Benefits
The delay of your beginning date is one method to guarantee the best monthly return, however, other options are worth looking into.
by Liz Weston, CFP(r) Senior Writer | Personal Finance economics, credit scores, and personal finance Liz Weston, CFP(r) is a personal financial columnist, co-host of"Smart Money," the "Smart Money" podcast Award-winning journalist and creator of five novels about finances, which includes the best-selling "Your credit score." Liz has been featured on a variety of national radio and television shows such as"Today" show "Today" show "NBC The Nightly News,"" as well as the "Dr. Phil" show, and "All All Things Considered." Her columns are published by The Associated Press and appear in a variety of media outlets weekly. Before joining NerdWallet, she wrote for MSN, Reuters, AARP The Magazine and the Los Angeles Times. She lives located in Los Angeles with a husband along with a daughter and a golden retriever who is a co-dependent.





Dec 21, 2022


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Knowing how to increase Social Security benefits is important because those payments will provide a significant portion of your income in retirement.
Unfortunately, many people don't understand how Social Security really works. They apply too early, miss out on important benefits and don't take advantage of strategies that could boost their income over the course of their lives. These mistakes could cost them as much as $250,000, researchers have estimated.
Here are eight ways to increase the amount of your Social Security benefits.
In this article and show More


1. Delay your application
Social Security retirement benefits rise approximately 5-7% every year that you are delayed between the age at which you can claim the first benefit at 62 years old and the full retirement age that is currently 66 and 2 months and reaching 67 for those born in 1960 or later.
The benefit you receive will increase if you are able to delay retirement beyond retirement age. Increase your payout by 8% for every year that you delay applying until the age of 70, when your benefit maxes out.
Pro tip: Most people prefer to delay their application in accordance with a huge collection of studies that take into account the longer lifespans as well as current rates of interest and survivors' benefits. A lot of financial planners advise their clients to tap other sources of income, for instance retirement funds, especially if this permits them to delay applying.
2. Work longer
Social Security benefits are based on the highest earning 35 years. You may be able to get more benefit working longer if you'll be able to substitute the lower-paying years with a higher-paid one.
People who were able to take time off to help raise families or otherwise had breaks from their jobs may find that working longer hours can help increase the amount of benefits they receive. (Note the fact that, if you start Social Security early, continuing to work may temporarily decrease the amount you receive.) In addition, a woman's salary is more likely is higher than that of a male as they age, increasing the potential payoff from continuing to work.
Pro Tips: If you begin Social Security early, your benefit will be reduced by $1 for every $2 you earn in excess of a certain limit, which is $21,240 in 2023. The earnings test will end at the time you reach your full retirement age It's best to wait at least until you reach this age to start applying.
3. Earn more
Another way to increase the amount of your next Social Security payment is to max out your earnings as many years as you can. "Maxing out" in 2023 means that you've made $160,200 or more which is the maximum amount of income that's subject to the 6.2 percent Social Security payroll tax. If you've maxed out throughout your 35 top-earning years, then you'll qualify for the highest Social Security benefit at your full retirement age. That's $3,627 per month in 2023.
Pro tip: Often, self-employed people will try to minimize the amount of their income subject to taxation on payroll, but that maneuver can come back to bite them when it's time to apply for Social Security. Making a little more tax in the short term can pay off in the form of an ongoing stream of more, inflation-adjusted income.
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4. Consider your spouse
Some lower-earning spouses could get more from taking an spousal benefit rather than getting their own retirement benefit. Spousal benefits can amount to as high as 50% of what the higher earner receives at his or the fully retired age. The amount is reduced when it is started earlier. The spouse with the highest earnings needs to be receiving an annual retirement income for the other partner to get the spousal benefits. The past was when those with higher earnings could "file and then suspend" to increase their own earnings, but that's no longer an option.
When you apply, Social Security will compare the spousal benefits against your own retirement benefits and provide you with the higher of the two. In the majority of cases, you won't be able to change from an spousal benefit to your own benefit in the future regardless of whether your own benefit is greater. (People born before Jan. 2 1954, are given the option of submitting an "restricted application" for spousal benefits only, and then changing to their own benefit later.)
Couples should also think about survivor benefits in making Social Security decisions. If one spouse dies, the survivor will start getting only one check -- which is the largest than the other two check the couple was receiving. The decrease in income resulting from the check that's lost can be significant. Couples can help mitigate the harm by making sure that the check that remains is as large as possible. That typically requires having the one with the highest income delay the date of Social Security typically at least until full retirement age.
Pro tip: Coordinating benefits with your spouse can get complicated. Consider using a Social Security claiming calculator to consider the options. There's a no-cost version available on the AARP website as well as the option to purchase more advanced versions at Social Security Solutions ($20 and up) or Maximize My Social Security ($39 and up).
5. Investigate divorced spouse benefits
If you're currently unmarried but an earlier marriage lasted at least 10 years, you might be eligible for spousal benefit based on your ex's work records. The amount is up to 50 percent of the employee's benefits when he or she reaches fully retired age. If you remarry, however the benefit for divorced spouses is canceled. You must be at or above 62 to get spouse benefits.
If your ex-partner died and the marriage lasted for at least 10 years, you could qualify for survivor benefits of up to 100% of the ex's benefit. Remarrying at 60 or more (or 50 or older in the case of a disabled) and still receive divorced survivor benefits. Benefits for survivors and divorced survivors can begin at age 60, or 50 if the survivor's disabled or at any other age in the case of taking care of the child of your ex-partner who is younger than 16 or has disabilities (and in that situation, the 10-year marriage requirement is waived). People receiving survivor benefits can change to their own benefits later if that's larger or more substantial, and vice versa.
Pro tip: Your ex must be at or above 62 for you to qualify for divorced spousal benefit, but it isn't necessary to be receiving his or his own benefits. (That's distinct from regular spousal benefits, which typically will require the main worker to submit prior to when the spouse can receive anything.) Survivor benefits are determined by the amount your ex received or could have earned when they reached full retirement age. (If your ex delayed claiming benefits beyond the age of full retirement, the survivor's benefit will be enhanced by the delayed retirement credits.) If you start benefits before your own full retirement age, however, the amount you get will be decreased.
6. Add your minor child
If you're currently receiving Social Security retirement or disability benefits, your offspring may have the right to receive an additional check. A minor who is not married can get up to 50 percent of the primary worker's retirement or disability benefits. This benefit for children typically expires at 18, but can continue to age 19 if the child is still attending high school. Benefits for children are available for those who are 18 or older who are disabled, and their disability started prior to the age of 22.
There is a "family maximum" which limits the amount families can earn based on one worker's earnings record. The maximum amount is between 150 percent and 188 percent of the monthly income at retirement age. If your total family benefits exceed the limit, the worker would continue to receive a check that is not reduced, but the dependents' checks will be cut in proportion.
Pro tip A word of caution: Family benefits, which include the benefits for spouses and children can be subject to the Social Security earnings test and could be cut or eliminated if the primary worker receives benefits earlier but continues to work.
7. Suspend your benefit
If you started Social Security early and decided that was a mistake, you can suspend your benefit at the time you reach . It will permit your benefits to be credited with the delayed retirement credit which increases the amount you are eligible for by 8% every year you delay until age 70, when your benefit maxes out. You don't have to repay the benefits you've received.
In addition, if you stop your benefits, it, also suspends the benefit of those who are receiving checks based on your work history, such as your spouse or minor child. The possible increment in your benefits might not cover the loss of the benefits your dependents receive.
Pro tip Pro tip: Sometimes Social Security workers incorrectly tell that they can't take benefits off. If that is the case take them to this webpage on the site.
8. Make a second attempt
If you change your mind within a year after applying to Social Security, you can cancel your application and repay all you've received in benefits. This will reset the clock on your benefits so you'll receive the 7% to an 8% increase each year due to the delay of your application. You can do this only once in your lifetime You can't revoke your application after 12 months.
Pro tip: Withdrawing your application is distinct from suspending your benefit. You can stop receiving your benefits by writing or orally at anytime after you reach full retirement age. In order to withdraw, you must complete Social security form SSA-521, which you must fill out within a year after applying and pay an amount equivalent to all benefits you and your family have received, which includes any Medicare premiums withheld from your checks.


About the author: Liz Weston is a columnist for NerdWallet. She is certified as a financial planner and author of five money books which include "Your Rating Score."







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