It's important to go into retirement knowing exactly what to expect from Social Security. And there's a really easy way to obtain that information.
All you need to do is review your most recent Social Security earnings statement. If you're 60 or older, you should've gotten it in the mail. If not, you can create an account on the Social Security Administration's website and access it there.
That statement should tell you what monthly benefit to expect at full retirement age (FRA), which is when you're entitled to your complete benefit based on your personal wage history.
Image source: Getty Images.
But what if you access that earnings statement and really don't like what you see? Don't panic. There are ways to make up for a Social Security benefit that seems like it's too small to go very far in retirement. Here's how.
1. Delay filing
Delaying your Social Security filing past FRA will result in a boosted benefit for life. In fact, for each year you hold off, up until age 70, your monthly benefit grows 8%.
Now, for many people, delaying Social Security also means having to work longer. But that may be worth doing, because you don't know how many years of retirement you have ahead of you. And locking in a higher monthly payday could be extremely important in case you end up living a longer life than expected -- which would be a good thing.
2. See if you'll fare better with spousal benefits
It may be that you're looking at a smaller Social Security benefit because you were a lower earner throughout your career. You may not be stuck with that benefit, though.
If you're married to someone who's eligible for Social Security or are divorced from someone in that same boat, you may be able to collect spousal benefits from Social Security. Now, spousal benefits will max out at 50% of what your current or former spouse gets to collect. But 50% of their benefit may be higher than 100% of yours.
3. Work during retirement
After many years of holding down a job, you may be eager to stop working once your retirement kicks off. But if you're looking at a smaller monthly benefit from Social Security, you may need to get on board with the idea of working part-time.
That doesn't necessarily have to mean committing to a rigid, preset schedule, though. Thanks to the gig economy, part-time work has become a lot more flexible. And you also have more options for turning an activity you love into an income source.
If you enjoy baking, for example, you could explore opportunities to do some catering or sell your goods at local farmers markets. If you play an instrument, you could moonlight as an entertainer at parties. There are numerous options to explore that shouldn't make you feel like you're stuck in a job you don't like.
You may not be thrilled with the monthly benefit you're eligible to receive from Social Security. But that doesn't mean you can't take steps to boost your retirement income and avoid being cash-strapped. You may need to make some changes to your retirement plans. But if you're willing to roll with those, you can set yourself up with a higher income stream that allows you to live more comfortably.
