Most Americans can expect to receive something from Social Security when they retire. As of September 2023, the typical Social Security retiree received $1,841.27 every month from the program. Imagine more than doubling that by boosting your benefit by an additional $1,983 per month!
The good news is that there's a way to do just that -- score an extra $1,983 per Social Security check. The bad news is that it's not something you can do overnight. Indeed, it takes decades of work and years of waiting to make it a reality.
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The two keys to drive that boost
That monthly $1,983 is the difference between claiming the maximum Social Security benefit at age 62 and claiming the maximum Social Security benefit at age 70, assuming you retire in 2023. The 62-year-old would receive $2,572 each month, while the 70-year-old would receive $4,555 monthly.
That means the two things you'll have to do to get that boost are:
- Earn the maximum Social Security benefit.
- Wait until age 70 to claim it.
That's much easier said than done. To earn the maximum Social Security benefit, you need to max out the taxes you pay into the system for 35 years. In 2023, that requires earning $160,200 from a covered job, and in 2024, that amount rises to $168,600.
Then, once you've earned that benefit, you need to wait until age 70 to claim it. This is because Social Security bases what you get on both your earnings history and the age you claim. The older you are, between age 62 and 70, the larger your monthly check will be, but the benefits of waiting end at 70.
What if you can't get there?
Even if you've never maxed out your covered earnings and don't plan on putting in another 35 years of work, it's important to understand the three key drivers of your benefit. They are the amount you earn each year, the number of years you work, and the age at which you claim.
Up to the max of each of those -- your 35 highest-paid years of work, at least $168,600 of covered earnings in 2024, and age 70 to claim -- the more you put into the system, the more you can expect to get out of it. Depending on where you are in your life and career, you may still be able to boost one or more of those factors to increase your total benefit.
Every bit helps -- get started now
While you may still be able to increase your Social Security benefit, doing so is a process that will take years. For instance, the gap between age 62 and 70 is eight years. If you want to wait to claim, you need a plan to cover your costs between those ages. Whether that's working longer or saving more, it's still something you'll have to plan for in advance in order to get to and through it successfully.
The sooner you begin this journey, the better the head start you'll have on that process, and the more time you'll have to get your plans in place. So get started now, and give yourself your best chance at getting close to that $1,983 in increased monthly Social Security benefits.
