Social Security benefits are a lifeline for millions of older adults. Roughly 90% of current retirees say they rely on their checks to some degree, according to a 2023 poll from Gallup, and of that group, close to 60% say their benefits are a major source of income.
If you're going to be depending on Social Security to any extent, it's often helpful to know how much you can expect to receive. This can give you a more realistic idea about how far your benefits will go, making it easier to see whether you're saving enough to cover the rest of your expenses.
The good news is that it only takes a few minutes to see an estimate of your future benefit amount. And if it's less than what you expected, there are a few simple ways to boost your monthly checks.
Image source: Getty Images.
How to check your future Social Security benefit
Perhaps the easiest way to see your future benefit amount is to check your statements online. If you haven't already, you'll first need to create a mySocialSecurity account. From there, you can see an estimate of your future benefit based on your real earnings throughout your career.
Keep in mind, however, that you have to qualify for benefits before you'll see an estimate. If you haven't worked and paid Social Security taxes for at least 10 years, you likely won't be eligible for retirement benefits yet.
Also, this estimate is the amount you'll receive at your full retirement age (FRA). Your FRA is the age at which you'll receive 100% of your benefit based on your earnings history, and it's age 67 for everyone born in 1960 or later.
Image source: The Motley Fool.
You can file before or after your FRA, but it will affect your benefit amount. By claiming as early as possible at age 62, your payments will be permanently reduced by up to 30%. Delay benefits past your FRA (up to age 70), and you'll receive your full benefit plus a bonus of at least 24% per month.
Finally, if you still have many years left in your career, that could also affect your benefit amount -- especially if your income changes dramatically between now and retirement.
Simple ways to boost your benefits
Delaying filing for Social Security is one of the most straightforward ways to increase your benefit amount. Again, waiting until age 70 to claim will boost your payments by at least 24%, which can amount to hundreds of dollars per month. There are a few other options, though, for increasing your benefits:
- Work for a full 35 years: The Social Security Administration calculates your benefit amount by taking an average of your wages over the 35 highest-earning years of your career. That number is then run through a complex formula and adjusted for inflation, and the result is the amount you'll receive at your FRA. If you've worked fewer than 35 years by the time you begin claiming, you'll have zeros added to your earnings average -- which will bring down your benefit amount.
- Consider working for more than 35 years: Working more than 35 years can also increase your benefit, as you're likely earning a higher income now than you were at the start of your career. Because only your highest-earning 35 years are included in your average, working longer now while you're earning a higher salary can increase your earnings average and your benefit amount.
- Boost your income: The more you're earning, the more you'll receive in benefits -- up to a point. The maximum taxable earnings limit is the highest income subject to Social Security taxes, and in 2024, that limit is $168,600 per year. While you don't have to reach that limit, the closer you can get to it, the higher your benefit amount will be.
Small steps can go a long way toward earning larger Social Security checks. If you can't work more than 35 years, delay benefits until age 70, or substantially increase your income, that's OK. Maybe you can delay claiming by just one or two years, for example, or increase your income by a couple thousand dollars per year. Either one of those moves could still result in a bigger monthly benefit.
Social Security can make an enormous difference in retirement, so it's wise to make the most of it. By checking your estimated benefit and maximizing your payments the best you can, you'll be setting yourself up for a more financially secure retirement.
