When it comes to Social Security, most Americans assume that once the checks start rolling in, the numbers are set in stone. But did you know there are strategies that could increase your monthly benefits by as much as 77%?
Whether you’re planning ahead or already collecting, two lesser-known Social Security rules can significantly boost your income in retirement.
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Here’s how these rules work and what you can do to maximize your benefits.
Rule No. 1: Delay benefits until age 70
The first — and arguably most powerful — strategy involves delaying your Social Security benefits until age 70.
Retired workers born in 1960 or later can increase their monthly benefits by up to 77% simply by waiting to claim Social Security at 70 instead of the earliest eligible age of 62.
How it works: Social Security calculates benefits based on your primary insurance amount (PIA) — the monthly payment you’re entitled to at your Full Retirement Age (FRA), which is currently 67 for those born in 1960 or later.
If you start collecting at 62, your benefits are permanently reduced by up to 30%. But waiting past your FRA adds delayed retirement credits to your PIA, boosting your benefits by 8% per year until you hit 70.
To put this in perspective, let’s say your PIA at 67 is $1,800. If you start collecting at 62, your monthly check would drop to around $1,260. However, by delaying until age 70, your benefit would rise to about $2,232 — a 77% increase compared to claiming at 62.
This strategy is especially beneficial for retirees who expect to live into their late 80s or beyond, as the higher monthly checks add up significantly over time. For couples, delaying benefits for the higher-earning spouse can also maximize survivor benefits, providing additional financial security for the surviving partner.
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Rule No. 2: Social Security’s ‘do-over’
But what if you’ve already started collecting benefits? That’s where the Social Security do-over rule comes in. This lesser-known provision offers retirees a second chance to boost their monthly benefits, even after they’ve started receiving payments.