Preparing for retirement takes decades of consistent work, and it can sometimes be a tedious and challenging process. However, not all aspects of retirement planning take years, and sometimes the simplest moves can make an enormous difference to your finances.
For those who will be relying on Social Security in retirement, it's wise to start planning as soon as you can. Some decisions -- like choosing your claiming age -- can require loads of research and careful thought. Others, though, only take a few minutes.
Whether you're retiring soon or still have decades left in your career, there's one nearly effortless Social Security move to make right now that could change the trajectory of your retirement.
How much will you get from Social Security?
A whopping 88% of current retirees depend on Social Security to some extent, according to a 2024 poll from Gallup, so it's a good idea to ensure you know how much to expect each month.
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Fortunately, you don't need to wait until retirement to see your estimated benefit amount. Once you've worked long enough to qualify for retirement benefits (which is generally 10 years), you can check your Social Security statements to see an estimate of your future benefit.
For most people, these statements are available online through your Social Security account. After creating an account or logging in, you can see your estimated benefit at full retirement age based on your real earnings throughout your career.
You'll also see an estimate of how your benefit will change by claiming early or delaying benefits, as well as how much you might receive in spousal benefits. If you believe your income will change significantly between now and retirement, you can also run calculations to see how that might affect your future benefit.
Knowing your estimated benefit is critical for retirement planning, because it will make it easier to determine how much you'll need to save on your own. If you simply guess at your future benefit amount and your checks end up being smaller than anticipated, you might find that you haven't saved enough to retire comfortably.
Simple strategies to boost your benefit
If you check your estimated benefit and find that you won't collect as much as you'd like, there are ways to increase your payments. Exactly how much of a boost you'll see depends on your situation, but sometimes small moves can make a big difference.
- Work for longer than 35 years: The Social Security Administration averages your wages over the 35 highest-earning years of your career to calculate your benefit amount, and in general, working longer can boost your payments. You're likely earning a higher salary later in your career than when you first started working, so the more high-earning years you have included in your average, the larger your benefit will be.
- Delay claiming benefits: For every month you wait past age 62 to file for benefits, you'll receive slightly larger checks. By holding off until age 70, you'll earn the highest possible payments based on your work history. The average retiree collects around $740 more per month at age 70 compared to 62, according to the Social Security Administration, making this strategy one of the most effective at increasing your monthly income.
- Take advantage of spousal or divorce benefits: Married and divorced retirees can sometimes be entitled to extra benefits each month. You could earn up to 50% of your spouse's or ex-spouse's full benefit amount in spousal or divorce benefits, and the average benefit in 2024 is around $910 per month.
The more thoroughly you can plan for retirement, the better your chances of enjoying your senior years comfortably. Checking your estimated benefit now and determining your savings needs accordingly can go a long way toward setting yourself up for success.
