Social Security is an important income source for a lot of older Americans today. And chances are, once you retire, you'll rely at least somewhat heavily on those benefits to cover your living expenses.
As such, it's important to do what you can to snag as high a monthly benefit as possible. That's the benefit you'll receive for life (not accounting for cost-of-living adjustments), so the more generous it is, the more comfortable a retirement you can look forward to. These simple strategies, thankfully, could set you up with that higher payday.
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1. Delay your filing for a higher monthly benefit
If your goal is to boost your Social Security benefits, there's perhaps no simpler way to go about it than by delaying your filing past full retirement age (FRA). FRA is when you can receive your monthly benefits in full, but for each year you hold off past that age, up until age 70, those benefits grow 8%.
So let's say your FRA is 67, which is the case if you were born in 1960 or later. If you claim Social Security at age 70, your monthly benefit will be 24% higher -- for life.
2. Check your earnings statements for underreported income
Each year, the Social Security Administration (SSA) issues workers an earnings statement. That document will summarize your wages for the year and contain an estimate of your future monthly Social Security benefit.
If you notice underreported income and work to have that mistake corrected, it could result in a larger monthly Social Security benefit in retirement, since those benefits are based on personal earnings. So make a point to check your earnings statement on a yearly basis by logging onto the SSA's website.
3. Work longer if you don't yet have a 35-year career
The monthly benefit you're entitled to from Social Security will depend on what your earnings look like during your 35 highest-paid years in the labor force. But if you don't have a full 35 years of employment under your belt, you'll have a $0 factored in for each year you're missing an income. And so even a 34-year career versus one that's 35 years long could result in a lower Social Security benefit.
If you want that benefit to be more robust, push yourself to work for 35 years, even if that means delaying retirement. And if you can't bear the idea of working another year, see if you can scale back to part-time work. A partial income that counts for Social Security purposes is better than a $0 income.
Along these lines, you don't need to have a salaried job for your income to count toward your Social Security benefits. You could join the gig economy if you're tired of working a more traditional job, and as long as you pay taxes on your earnings (which you're required to anyway), you're all set.
Social Security will likely play a big role in funding your retirement. Taking these key steps could help ensure that you're able to walk away with a higher monthly payday for life.
