You work hard. You pay your taxes. It seems like you're doing everything you can to maximize your Social Security benefits in retirement. But there could be a few things you're still overlooking.
If you truly want to get the most out of the program, there are three key parts of the Social Security benefit formula you must learn to leverage. Here's what you need to do.
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1. Work at least 35 years whenever possible
The Social Security Administration doesn't always consider all of your income when calculating your monthly benefit. It looks at your 35 highest-earning years, adjusted for inflation. You can still qualify with a shorter work history, but you'll have some zero-income years factored in that can significantly reduce how much you get per month.
While it's not always feasible, working at least 35 years before applying for Social Security makes sense if you're able to. This way, your benefit calculation won't include any years with no income. And you don't have to stop there. If you're earning more now than in years past, continuing to work will likely increase your benefit over time.
2. Increase your income today
Your Social Security benefit depends on how much money you pay Social Security payroll taxes on throughout your career. The more income you earn, the more taxes you pay, and the larger your future benefit will be -- at least, to a point.
You only pay Social Security taxes on the first $184,500 you earn in 2026. If you make more than this, that extra income won't help boost your future benefit.
This won't be an issue for most people, though. If you're able to secure a raise, find a better-paying job, or start a side hustle today, you'll almost certainly boost your future benefits.
3. Choose your claiming age carefully
Everyone has a full retirement age (FRA) that the government assigns based on your birth year. If you were born in 1960 or later, yours is 67. You must wait until then to apply if you want the full benefit you've earned based on your income history.
It's possible to claim Social Security as early as 62, but that shrinks your benefit by up to 30%. Every month you wait to apply increases your checks. You can even delay benefits past your FRA, and they'll continue growing until you qualify for your maximum benefit at 70.
But this doesn't mean waiting is always the way to go. If you have a short life expectancy or no other way to make ends meet, claiming earlier could still be the right choice for you.
