What's Happening
7 minutes ago

The Best Stocks to Invest $1,000 in Right Now

foolfool.com
12 minutes ago

AMD Management Is Buying Millions of Shares of AMD Stock. Should Investors Buy AMD Stock, Too?

foolfool.com
14 minutes ago

DeepSeek Is Here: How Amazon Is Using It to Grow Its Artificial Intelligence (AI) Program

foolfool.com
19 minutes ago

Why Walgreens' Dividend Suspension Shouldn't Come as a Surprise to Investors

foolfool.com
20 minutes ago

Google I/O 2025 Officially Set For May — Here's What To Expect, From AI Breakthroughs To The Future Of Android And Pixel 9a

benzingabenzinga.com
23 minutes ago

The Best Warren Buffett Stocks to Buy With $1,000 Right Now

foolfool.com
27 minutes ago

Mark Zuckerberg's Meta Eyes Acquisition Of Korean AI Chip Startup Founded By Former Samsung And AMD Engineer

benzingabenzinga.com
27 minutes ago

Mark Zuckerberg Just Made 3 Startling AI Predictions. Should You Buy Meta Stock Before They Come True?

foolfool.com
28 minutes ago

Here's the Smartest Way to Invest in the S&P 500 in February

foolfool.com
32 minutes ago

Is Boeing Stock a Buy Now?

foolfool.com
40 minutes ago

Prediction: Nvidia Stock Is Going to Surge After Feb. 26

foolfool.com
41 minutes ago

Larry Summers And Peter Schiff Warn Of Rising Inflation Risks As Markets Slash Fed Rate Cut Expectations: 'Most Sensitive Moment'

benzingabenzinga.com
52 minutes ago

Is It Smart to Buy Stocks With the S&P 500 Near Its Record High? Warren Buffett Has Brilliant Advice for Investors.

foolfool.com
59 minutes ago

Meta Stock Surges 17.47% In 17 Days, Marking One Of Its Longest Winning Streaks—Analysts Say There's Still Room For Double-Digit Growth For Mark Zuc...

benzingabenzinga.com
1 hour ago

This Is My Backup Plan in Case Social Security Cuts Benefits

foolfool.com
1 hour ago

This Is My Backup Plan in Case Social Security Cuts Benefits

retireretire.ly
1 hour ago

Prediction: OpenAI's In-House AI Chips Aren't a Threat to Nvidia Stock Investors

foolfool.com
1 hour ago

Earnings Scheduled For February 12, 2025

benzingabenzinga.com
1 hour ago

Biogen Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts

benzingabenzinga.com
1 hour ago

MKBHD Joins Guessing Game After Rivian Teases 'Mirage' Event For Feb. 19: What's Going On?

benzingabenzinga.com

5 Secrets to a Bigger Social Security Check

Social Security is the backbone of many Americans’ retirement budgets. The government program accounts for at least 50% of household income for about half of people aged 65 and older, according to data reviewed by the Social Security Administration. So, getting a bigger Social Security check can have a massive impact on the quality of your life in retirement.

The key to getting a bigger check is a keen understanding of how the rules work. Unfortunately, the complexities of Social Security are too much for many Americans, and many hold false beliefs about how the system works. But if you know these five secrets, you could end up with a bigger Social Security check when all is said and done.

Two Social Security cards on top of a pile of cash.

Image source: Getty Images.

1. Work at least 35 years

The simplest way to increase your Social Security benefit is to make sure you work at least 35 years. Your monthly benefit is based on your average monthly earnings (adjusted for wage inflation) over 35 years. If you work fewer than 35 years, the Social Security Administration fills in the missing years with $0 earned. Replacing that $0 with the income from a job or even just a few thousand dollars from a side hustle could result in a nice bump to your benefits for the rest of your life.

One thing to be aware of if you’re already collecting benefits is the Social Security earnings test. The earnings test applies to anyone who hasn’t yet reached full retirement age. If you earn over a certain threshold, the Social Security Administration will withhold some of your current benefits. In other words, you’ll see your monthly check decrease. Don’t worry, though. The SSA will adjust your benefit higher when you reach full retirement age to make up for the withheld amount.

2. Work well into your 60s

The Social Security Administration adjusts your wages from your 20s and 30s for increases in the standard of living each year. But those adjustments stop when you turn 60.

Most people continuing their career into their 60s are earning more than they did in their 20s and 30s, even after adjusting for inflation. But even if your inflation-adjusted earnings haven’t increased, continuing to work in your 60s will ultimately replace those early earning years when the SSA calculates your 35 highest-earning years. As a result, you’ll get a bigger benefit check.

3. Suspend your benefits

If you’re past full retirement age but less than 70 years old, you have the option to suspend your benefits. When you suspend your benefits, you’ll start accruing delayed retirement credits. Those will add 2/3 of a percentage point to your check for each month you keep your benefits suspended. Benefits automatically resume at age 70. You can boost your benefit up to 26.7% depending on when you were born.

This can be a great option for someone who claimed benefits early in retirement, but has gone back to work or has seen their investments perform well. If you don’t have an immediate need for supplemental income, it might make sense to suspend benefits today in exchange for a bigger Social Security check later.

4. Pay attention to taxes

The IRS uses a metric called combined income to determine what portion (if any) of your Social Security income is taxable. Your combined income is equal to half your Social Security benefits plus your adjusted gross income plus any nontaxable interest income. If your combined income exceeds certain thresholds, a percentage of the amount exceeding it becomes taxable. Here are the thresholds.

Amount Taxable Combined Income (Single) Combined Income (Joint)
0% Less than $25,000 Less than $32,000
Up to 50% Between $25,000 and $34,000 Between $32,000 and $44,000
Up to 85% More than $34,000 More than $44,000

Data source: Social Security Administration.

If you can keep your combined income below the major thresholds, you can keep more of your Social Security check.

5. Be smart about survivor benefits

Survivor benefits can be claimed as early as age 60, but claiming as soon as possible might not be the smartest decision.

Widows and widowers have the favorable option of being able to claim their survivor benefit and personal benefit at different times. Spouses with living partners must file for both personal and spousal benefits at the same time. The ability to apply at different times means you should claim one of those benefits as soon as possible and the other as late as necessary to receive the maximum.

For example, if your full survivor benefit is $1,500 per month and your full personal benefit is $1,000 per month, it likely makes sense to wait until 62 to claim your personal benefit and switch to your survivor benefit when it maxes out at 67. The opposite could also be true, leading you to claim the survivor benefit at 60 and wait until 70 to switch to your personal benefit.

If you properly manage your Social Security options, you can come away with significantly higher lifetime benefits.

The $22,924 Social Security bonus most retirees completely overlook

If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.

View the “Social Security secrets” »

The Motley Fool has a disclosure policy.

Related Posts

Okay, folks. It’s time to get serious about Social Security. I don’t like to be the person who sounds alarms and causes unnecessary panic. But

Image source: Getty Images The best credit cards have a lot of perks — cash back, travel rewards, purchase protection, and more. But what happens

Social Security benefits for spouses are a common source of confusion. MassMutual reports that 25% of surveyed adults near retirement age were unaware that spouses

Image source: Getty Images Most people pay their credit card bill once a month, but you’re allowed to pay more frequently. Technically you can pay