Social Security can make or break retirement for many people, so it pays to make sure you're collecting as much as possible in benefits.
There are some straightforward ways to increase the size of your checks, such as working longer or increasing your income. Delaying filing for benefits up to age 70 will also boost your payments, sometimes by hundreds of dollars per month.
But there are also more subtle strategies many people aren't aware of that could help you get more out of Social Security. And the good news is that they don't require earning more or waiting longer to claim.
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1. Take advantage of spousal, divorce, or survivors benefits
Retirement benefits are the most common form of Social Security, but there are other types you could be eligible for if you're married, divorced, or widowed. These include:
- Spousal benefits: These are generally available to those who are married to someone entitled to retirement or disability benefits. The most you can receive is 50% of the amount your spouse is eligible for at their full retirement age.
- Divorce benefits: Similar to spousal benefits, divorce benefits are available to those who were previously married. To qualify, you cannot currently be married, and your marriage must have lasted for at least 10 years. Like spousal benefits, the most you can collect is 50% of your ex-spouse's full benefit amount.
- Survivors benefits: Survivors benefits are primarily available to widow(ers), but other family members (such as parents, children, and divorced spouses) are also sometimes eligible. How much you can receive will depend on several factors, but widow(er)s can often collect their spouse's entire benefit amount in survivors benefits.
Even if you've never worked and don't qualify for Social Security based on your own work history, you could still receive spousal, divorce, or survivors benefits.
The average spousal or divorce benefit is around $887 per month, as of October 2023, and the average survivors benefit amount for nondisabled widow(er)s comes out to roughly $1,717 per month. By taking advantage of all the types of Social Security you qualify for, you could potentially boost your payments by hundreds of dollars per month with next to no effort.
2. Contribute to a Roth IRA to reduce your Social Security taxes
Even in retirement, you may still be subject to income taxes -- including taxes on your benefits. Social Security is subject to both state and federal income taxes. State taxes will depend on where you live, and fortunately, most states don't tax benefits.
Federal taxes, though, will affect everyone regardless of location, and they're determined by a figure called your "provisional income." Your provisional income is 50% of your annual benefit amount, plus your adjusted gross income and any nontaxable interest.
So, for example, if you're earning $20,000 per year from Social Security and withdrawing $40,000 per year from your 401(k), your provisional income would be $50,000 per year. That number will then determine how much of your benefits are subject to federal taxes.
| Percentage of Your Benefits Subject to Federal Taxes | Provisional Income for Individuals | Provisional Income for Married Couples Filing Taxes Jointly |
|---|---|---|
| 0% | Under $25,000 per year | Under $32,000 per year |
| Up to 50% | $25,000 to $34,000 per year | $32,000 to $44,000 per year |
| Up to 85% | More than $34,000 per year | More than $44,000 per year |
Data source: Social Security Administration. Table by author.
Because these income limits are so low, most retirees will be subject to federal taxes on their benefits. However, there is a loophole: Withdrawals from Roth accounts (such as Roth IRAs and Roth 401(k)s) do not count toward your provisional income.
In the previous example, your provisional income was $50,000 per year, so up to 85% of your benefits would be taxable. But say that instead of pulling $40,000 per year from a 401(k), you're withdrawing it from a Roth IRA. In this case, your provisional income would be just $10,000 per year. That would put you in the lowest bracket, and none of your benefits would be subject to federal taxes.
This means if you're able to invest in a Roth account, it could lower your tax bill substantially and help you keep more of your benefits.
Social Security is often a major source of income in retirement, so it pays to ensure you're maximizing your benefits. By taking advantage of the various types of benefits you qualify for and doing your best to optimize your tax situation, you can squeeze every penny out of Social Security.
