15 Social Security Secrets You Probably Didn't Know

You've probably heard of Social Security -- and you may be looking forward to collecting money from it once you're older. But how much do you really know about the program? Here are a few lesser-known facts you may not be aware of.

The $17,166 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $17,166 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

There's no such thing as a single universal Social Security benefit. Rather, the amount you're entitled to collect in retirement will hinge on how much money you earned during your 35 most profitable years on the job.

ALSO READ: How to Beat the Average $1,544 Monthly Social Security Benefit

You're entitled to your full monthly Social Security benefit once you reach full retirement age, or FRA. But FRA isn't the same for everyone. Yours will depend on your year of birth. That said, anyone born in 1960 or later has an FRA of 67.

You're allowed to sign up for Social Security before FRA -- as early as age 62 -- but filing early will leave you with a lower benefit for life. If you regret your decision to claim benefits early, you can undo your filing once in your lifetime and sign up again at a later age. But, you have to do so within a year of claiming Social Security and repay all of the benefits you received.

If you wait to collect Social Security beyond FRA, your benefits will get a nice boost. But once you turn 70, your benefits can't grow anymore, so there's no sense in delaying past that point.

ALSO READ: Are You Missing Your Opportunity to Maximize Your Social Security Benefits?

There's no financial benefit to claiming Social Security after age 70, and doing so could cause you to lose out on money that should've been yours. But Social Security will pay you up to six months of retroactive benefits, so if you sign up at age 70 1/2, you'll get a lump sum payment once your application goes through.

The $17,166 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $17,166 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

Collecting a paycheck won't stop you from receiving Social Security. But if you haven't yet reached FRA, you should know that some of your benefits may be withheld if your earnings exceed a certain threshold.

Many seniors are shocked to learn that Social Security benefits are sometimes taxable in retirement. The more income you have as a senior, the more likely you are to face taxes on your benefits. But there are ways to avoid that scenario, like housing your retirement savings in a Roth IRA rather than a traditional one.

ALSO READ: 3 Ways to Score a Higher Social Security Paycheck

There are 13 states that impose taxes on Social Security. Many, however, offer exemptions for low and middle earners.

The Social Security benefit you start out collecting likely won't be the same amount you receive for life. Each year, benefits are subject to a cost-of-living adjustment, or COLA, which could give your Social Security income a boost.

Seniors who are signed up for Social Security and Medicare have their monthly Part B premiums deducted from their benefits. If there's ever a year when your Part B premium increase exceeds your COLA, you won't face a reduction in benefits. The worst thing that will happen is that your monthly benefit won't go up.

The $17,166 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $17,166 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

If you never earned money but are or were married to someone who's eligible for benefits, then you, too, may be entitled to Social Security via spousal benefits. Your spousal benefit will amount to 50% of what your current or former spouse collects.

ALSO READ: Are You Stuck With the Same Social Security Benefit for Life?

If you have a spouse who passes away before you, you'll generally be entitled to survivors benefits. Those benefits will equal 100% of what your spouse collected while he or she was alive.

Each year, there's a wage cap that dictates how much income is subject to Social Security taxes. This year, it's $142,800. Earnings beyond that point aren't taxed for Social Security purposes, but they also won't count toward calculating your future benefit.

The Social Security Trustees recently announced that the program's trust funds are expected to run dry by 2034. At that point, Social Security may have to slash benefits unless lawmakers intervene with a better solution. As of now, it's estimated that recipients could lose as much as 22% of their scheduled payments.

ALSO READ: 3 Reasons Social Security Isn't as Unreliable as You Think

Even if Social Security benefits aren't cut, they'll only replace about 40% of your preretirement income, assuming you're an average earner. Most seniors need about twice that much money for a comfortable lifestyle, so it's a poor choice to look to Social Security for all of your retirement income. Rather, you should aim to save independently for your senior years in an IRA or 401(k).

The $17,166 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $17,166 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

Social Security is a complex program -- one you may come to depend on later in life. Keep educating yourself on the program so you're able to make the most of it once you're entitled to benefits.

The Motley Fool has a disclosure policy.