Social Security Hack: Max Out Your Benefits With This Strategy

If you’ve heard about a $16,728 Social Security bonus, you’re not alone. Many retirees and soon-to-be retirees are eager to learn how to unlock this extra income. While it’s not a one-time bonus, this amount refers to a strategy for significantly increasing your lifetime Social Security benefits. Here’s how you can maximize your payments and get closer to that figure.

Delay Claiming Benefits for Maximum Payout

One of the most effective ways to boost your Social Security is to delay claiming your benefits until age 70.

• Full Retirement Age (FRA): Most people reach FRA between 66 and 67, depending on their birth year.
• Delayed Retirement Credits: If you wait past your FRA, your benefits grow by 8% per year until age 70.
• The Result: Delaying benefits could increase your monthly checks by 24% to 32%. Over the years, this adds up to tens of thousands of dollars in extra income.

Work for At Least 35 Years

Social Security calculates your benefits based on your top 35 years of earnings.

• If you’ve worked fewer than 35 years, zeros will be factored into the average, lowering your benefits.
• To avoid this, try to work a full 35 years or more, and aim to increase your earnings during your peak working years. Higher earnings mean higher benefits.

Take Advantage of Spousal and Survivor Benefits

If you’re married, spousal and survivor benefits can provide a significant boost.

• Spousal Benefits: You could receive up to 50% of your spouse’s benefit if it’s higher than yours.
• Survivor Benefits: If your spouse passes away, you may be eligible to receive their full benefit amount.

These options can provide financial security for couples and widows or widowers.

Avoid Early Retirement Penalties

While you can claim benefits as early as age 62, doing so significantly reduces your monthly payments.

• Benefits claimed before your FRA can be reduced by up to 30%.
• Waiting until FRA or later avoids these penalties and ensures you get the full amount you’re entitled to.

Plan for Taxes and Work Rules

Taxes and earnings limits can also affect how much you receive.

• If you’re under FRA and still working, earning above a certain threshold could temporarily reduce your benefits.
• Additionally, depending on your total income, up to 85% of your Social Security benefits may be taxable. Smart tax planning can help minimize this impact.

Is the $16,728 Bonus Realistic?

This amount represents an ideal scenario where someone maximizes their benefits by delaying claims, optimizing earnings, and using spousal benefits effectively. While not everyone will reach this exact figure, following these strategies can lead to significantly higher Social Security payments over your lifetime.

If you’re nearing retirement, consulting a financial advisor can help you make informed decisions tailored to your situation. By planning and making strategic choices, you can enjoy a more secure and comfortable retirement.