As we barrel toward 2025, now is the time to solidify your budget and financial plans for the new year. Whether you're planning to retire next year or still have decades left before retirement, it's wise to ensure you have a Social Security strategy in place.
Social Security can be complex and confusing, but even small steps can go a long way toward building a more financially secure retirement. These three moves take practically zero effort, but they can make an enormous difference down the road.
Image source: Getty Images.
1. Check your estimated benefit amount
Most people qualify for retirement benefits after 10 full years of work, and once you're eligible for Social Security, you can check your estimated benefit amount online via your statements.
Your estimated benefit is based on your real earnings throughout your career, and knowing this number will make it easier to determine how much of your retirement income will need to come from other sources. If you head into your senior years with no idea how much you'll collect from Social Security, receiving less than you expect could force you to drain your savings too quickly.
Keep in mind that this estimate will likely change over time, especially if your earnings shift drastically between now and when you file for Social Security. It's a good idea, then, to check your estimate regularly to ensure your savings goals are still accurate.
2. Determine which types of benefits you can receive
Retirement benefits are the most common type of Social Security, but you could qualify for other benefits, too -- especially if you're married, divorced, or widowed.
Spousal benefits are often available to those who are married to someone entitled to either retirement or disability benefits. If you're divorced, not currently married, and your previous marriage lasted for at least 10 years, you could qualify for divorce benefits. In both cases, you can collect up to 50% of your spouse's or ex-spouse's benefit at full retirement age.
Survivors benefits are generally reserved for widow(er)s, but sometimes other family members -- such as parents and children who were financially dependent on the deceased person -- can receive them, too. It's possible to receive up to 100% of your family member's benefit once they pass, though your exact amount will depend on factors like your age and relation to the person.
The average spousal and divorce benefit among retired workers is around $910 per month, according to October 2024 data from the Social Security Administration, while the average nondisabled widow collects roughly $1,786 per month in survivors benefits.
If you qualify for these types of benefits, taking full advantage of them can significantly boost your monthly income.
3. Discuss a claiming strategy with your spouse
If you're married and your spouse is also entitled to Social Security, you may want to start planning a strategy for when each of you will begin claiming.
Your age will directly affect your benefit amount, sometimes by hundreds of dollars per month. Filing as early as possible at age 62 will reduce your payments by up to 30%, while delaying until age 70 will earn you a bonus of at least 24% on top of your full benefit.
You and your spouse may decide to file at the same time, regardless of your ages. Maybe you'll both file early or delay benefits. Or you might choose for one of you to file early to boost your income early in retirement, while the other delays benefits to earn the monthly boost. Regardless of your choice, discussing your options now can help you better prepare.
Social Security is an integral part of retirement for millions of older adults, and the more planning you put into your strategy, the better off you'll be. By making these three simple moves in 2025, you can set yourself up for a more comfortable retirement.
