10 Oct How Can I Increase My Social Security Benefit in Retirement?
Given the complexity behind calculating your Social Security benefits, you may be wondering how to maximize what you’ll receive or to increase what you’re eligible for if you’re not satisfied with your estimated amount.
One way to increase your Social Security benefits is to wait until you reach age 70 to claim your benefit, which would provide you with the maximum amount possible based on your earnings record.
For example, if you were born between 1943 and 1954, you would reach full retirement at age 66, meaning you would receive 100% of your monthly benefit amount if you claim benefits when your turn 66.
However, waiting until age 70 to start claiming Social Security checks means you’ll receive 132% of your monthly benefit amount at that point. This higher amount compensates you for waiting to start receiving benefits, and, over time, it could end up working out to a higher lifetime amount. Consider your health and your family’s history to determine if waiting to claim benefits might work to your advantage.
Another way to increase your Social Security benefits is to consider the estimated benefits of both you and your spouse if you’re married. If one of you has a significantly higher benefit, one of you may be better off claiming the spousal benefit of 50% of the higher amount, rather than you each claiming Social Security on your own.
In addition, since your Social Security retirement benefits are based on the highest 35 years of earnings over your career, you could potentially increase your monthly benefit amount by continuing to work and earning more over your remaining working years.
For example, if you work until 62, your earnings may be based on your pay from when you were still in your 20s. Yet if you work a few more years (likely earning more money than you did several decades ago), your lower earnings record from earlier in your career would fall off, and your benefit amount would be calculated based on your higher-earning years.
As a fee-only advisor in Roseville, CA, we help clients in the Sacramento area figure out how to maximize Social Security benefits and incorporate these benefits into their overall retirement planning.
Schedule a complimentary, 15-minute call with a fee-only financial advisor today to discuss your personal situation.
Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.