SOCIAL Security beneficiaries can boost their annual payments by tens of thousands of dollars with a few hacks.
By working the system to their advantage, Americans inching towards retirement can use three strategies to bump their yearly benefits by up to $27,324.
AFPSocial Security is a federally funded program launched in 1935[/caption] GettySocial Security beneficiaries can boost their yearly earnings from the program with a few strategies[/caption]Social Security is a federally funded program that provides financial support to millions of American retirees, individuals with disabilities, and survivors of deceased workers.
Americans can start cashing in on their benefits once they reach 62 as long as they have worked and paid Social Security taxes for a decade or more.
The age at which you begin collecting your monthly checks has a direct impact on how much money you receive, so many experts have advised retirees to delay their collection as long as possible.
It is an “excellent strategy,” Social Security pro Shalae Morgan previously told The U.S. Sun, and can potentially add an extra $27,324 to your bank account each year.
Individuals retiring at 62 in 2025 can receive a maximum payment of $2,831 per month – up from $2,710 in 2024 thanks to the annual cost-of-living adjustment, or COLA.
Those who delay their retirement until their full retirement age this year can receive an even bigger monthly Social Security check of up to $4,018 – roughly $1,200 more.
The largest Social Security check is available to Americans who hold off their retirement until age 70.
These individuals are capped at a monthly payment of $5,108.
Americans who delay their retirement until 70 can cash in up to $2,277 more each month in Social Security, or up to an extra $27,324 more per year.
“Therefore, the longer you wait to collect your Social Security, the better it will be for you,” said Morgan.
Many financial planners encourage Americans approaching retirement to utilize other money pots, such as retirement funds, if it will help to delay their Social Security application.
Although bumping up your yearly Social Security allotments by $27,324 may not be realistic for everyone, delaying your collection as long as possible is a handy trick that could help set you up for a solid financial position in the long run.
TIME PAYS
A second strategy to bump up your Social Security payments is to work longer, as payments are calculated using a person’s 35 highest-earning years.
Working longer offers Americans the opportunity to increase their monthly check by replacing one of their lower earnings years with one in which they made more money.
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here's how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
401(k) Plans A 401(k) is a retirement account offered through employers, where contributions are tax-deferred. Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings. Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority. IRAs An Individual Retirement Account (IRA) offers another avenue for retirement savings. Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices. Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.This step can be especially beneficial for those who saw a break in their employment, such as those who took time off from work to raise a family.
Women also generally see a boost to their income later in life than men, so continuing to work could be a helpful way to spike their Social Security payments.
Workers should note, however, that for individuals who claimed their benefits early, continuing to work may temporarily reduce their payments.
Those who began cashing in on Social Security early will see their benefits reduced by $1 for every $2 you earn above a certain limit.
The limit was $22,320 in 2024 and rose to $23,400 this year.
This rule does not apply when Americans reach their full retirement age, so experts generally advise waiting until one’s FRA to apply for benefits.
WEALTH WORKS
A third Social Security secret that Americans can use to boost their lifetime income is to max out their income for as many years as possible.
This year, the first $176,100 of an individual’s earnings is subject to Social Security tax.
2025 Social Security Payment Schedule
Social Security payments are handed out on the second, third, and fourth Wednesday of each month. Benefits will be paid out in 2025 on the following dates:
January 8, 15, and 22 February 12, 19, and 26 March 12, 19, and 26 April 9, 16, and 23 May 14, 21, and 28 June 11, 18, and 25 July 9, 16, and 23 August 13, 20, and 27 September 10, 17, and 24 October 8, 15, and 22 November 12, 19, and 26 December 10, 17, and 24Americans who reach this cap during all 35 of their highest-earning years will be eligible to receive the maximum monthly payment at their FRA, which is $4,018 in 2025.
Self-employed individuals often work the system by minimizing the portion of their earnings subject to payroll taxes, but this strategy can hurt them in the long run when it comes time to collect their Social Security checks.
Thus, paying a slightly larger amount in taxes during one’s working years could ultimately see the reward of a higher lifetime stream of inflation-adjusted payments.
Check out these changes underway at the Social Security Administration that may directly impact you.
Social Security will make “benefits” history with the first ever payout switch in 90 years.
Plus, see the two big changes underway at the Social Security Administration – make sure to look closely at your monthly check.
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