Social Security often becomes a key income source after retirement, making it crucial to maximize monthly benefits. Benefits are calculated from personal earnings history, but specific actions can increase them.
Delaying a claim past full retirement age, which is 67 for those born in 1960 or later, automatically raises benefits by 8% annually until age 70. This strategy offers a straightforward way to secure higher monthly payments, though it carries a risk of reduced lifetime benefits if health is poor.
Checking earnings statements on the Social Security Administration website helps avoid underreported income, which can lead to smaller benefits. If errors are found, individuals can contact the SSA to update their income history.
Working later in life, even part-time after claiming benefits, can replace years with zero earnings in the SSA's 35-year calculation, potentially increasing payments. Many retirees overlook a $23,760 annual bonus available through such strategies.