The amount of money you collect each month from Social Security is based on your personal earnings history. But you filing age also plays a role in determining what your monthly benefit looks like.
You can sign up for Social Security as early as age 62. But to collect your complete monthly benefit based on your income history, you need to wait until full retirement age (FRA) to sign up. That age is 67 if you were born in 1960 or later.
You can also delay your Social Security filing past FRA. For each year you do, up until age 70, your monthly benefit gets to grow 8%.
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You may be eager to snag as high a benefit from Social Security as possible. But the idea of having to delay your claim -- and work longer all the while -- may not be so appealing.
The good news is that you don't necessarily have to postpone your Social Security filing to possibly score a higher monthly benefit. You just need to make this important move during your working years.
Make sure your wage data is accurate
Because the Social Security benefit you wind up with is based on your earnings, it's important to make sure that the Social Security Administration (SSA) has the correct information for you on record. If your income is ever underreported, it could result in a lower monthly benefit down the line.
That's why it's essential that you check your Social Security earnings statement every year. If you're under 60, it won't come in the mail automatically, so you'll need to create an account on the SSA's website and get it there. But either way, checking that statement is a quick, easy step that could help you get more money from Social Security if you spot errors working against you and have them corrected.
Another good reason to check your annual Social Security earnings statement? It will include an estimate of your future monthly benefit.
Now to be fair, that estimate may not be too helpful if you're in your 20s or 30s and still have many income-earning years ahead of you. But if you're already in your 40s or 50s, it may be more accurate. And having a sense of what benefit you're in line for could help you plan better for retirement.
If you see, for example, that you're in line for a monthly benefit of $2,000, it could help you determine whether you're contributing enough to your IRA or 401(k) plan. It could also help shape some of the choices you make, such as which part of the country to retire in.
Delaying Social Security isn't your only option
Waiting to file for Social Security could mean having to stick out a stressful job or make other sacrifices you'd rather not agree to. Rather than put yourself through all of that, you can instead simply commit to checking your Social Security earnings statement every year. That simple act of vigilance could be just the thing that leads to a higher benefit throughout your retirement.
