If you’re planning to retire in 2025, it’s more important than ever to make sure you’re getting the most out of your Social Security benefits. With recent cost-of-living adjustments and updated policies, there are smart strategies you can use to maximize your monthly checks. Here’s how you can make the most of your Social Security income this year.
1. Take Advantage of the 2025 COLA Increase
Social Security benefits increased by 2.5% in 2025 due to the annual cost-of-living adjustment (COLA). This means the average monthly benefit has gone up from $1,927 to $1,976. While this may not seem like a massive increase, every extra dollar counts in retirement. Make sure you check your benefit statement to confirm you’re receiving the correct amount.
2. Delay Your Benefits for Bigger Payments
The age at which you start claiming Social Security has a major impact on how much you receive each month. If you start collecting before your Full Retirement Age (FRA)—which is 67 for those born in 1960 or later—your benefits will be permanently reduced.
However, if you delay your claim until age 70, your monthly payments could increase by up to 32%. Waiting longer means bigger checks for the rest of your life, so if you can afford to wait, it’s a strategy worth considering.
3. Work a Few Extra Years to Increase Your Payout
Your Social Security payments are based on your highest 35 years of earnings. If you have some years of low or no income, those years bring down your average benefit amount. Working a few extra years at a higher salary can replace those lower-earning years, boosting your monthly check when you finally claim benefits.
4. Be Careful About Earning Too Much While Collecting Benefits
If you claim Social Security before your full retirement age and continue working, your benefits may be reduced if you earn too much. In 2025, if you earn over $23,400 before reaching full retirement age, your benefits will be reduced by $1 for every $2 you earn above the limit.
Once you hit your FRA, there’s no penalty, and you can earn as much as you want without losing any benefits. If you’re still working and under FRA, consider waiting to claim your benefits to avoid unnecessary reductions.
5. Minimize Taxes on Your Benefits
Did you know your Social Security benefits might be taxed? If you’re an individual making over $25,000 or a married couple earning over $32,000, you may have to pay taxes on up to 85% of your Social Security income.
One way to lower your tax bill is by strategically withdrawing money from retirement accounts like a 401(k) or IRA. Working with a financial planner can help you keep more of your Social Security income.
6. Plan with Your Spouse to Maximize Household Benefits
If you’re married, there are smart ways to increase your total household Social Security income. For example, one spouse can claim spousal benefits while the other delays their own claim to maximize future payments. Additionally, widows and widowers can receive the higher of their spouse’s or their own benefit, so planning ahead can make a big difference.
7. Stay Updated on Social Security Rule Changes
Social Security rules and policies can change, and new legislation could impact your future benefits. For example, ongoing discussions about the Social Security Fairness Act and potential adjustments to tax thresholds could affect how much you receive. Staying informed can help you adjust your strategy and make the best financial decisions for your retirement.
Bottom Line
Maximizing your Social Security benefits in 2025 doesn’t have to be complicated. By waiting until full retirement age (or later) to claim, working longer, keeping an eye on taxes, and coordinating with your spouse, you can ensure you’re getting the biggest possible monthly check.
With Social Security being a major source of income for most retirees, a little planning now can go a long way in securing a comfortable and stress-free retirement.
