As retirees look ahead to the year 2025, one key concern on their minds is ensuring their Social Security benefits are as high as possible. The good news is that there are several strategic moves retirees can make now to boost their benefit checks in the future. Social Security is a critical income source for many retirees, and even small adjustments can result in significantly higher payments. Here are two key moves retirees can consider making now to potentially increase their Social Security benefit checks for 2025.
1. Delay Claiming Social Security Benefits
One of the most effective ways to increase your Social Security benefits is to delay claiming them for as long as possible. Social Security allows individuals to begin receiving benefits as early as age 62, but doing so results in a permanent reduction in monthly payments. Conversely, waiting until after your full retirement age (FRA)—typically between 66 and 67—can significantly increase your monthly benefit.
If you delay claiming benefits beyond your FRA, your monthly Social Security benefit will continue to grow until you reach age 70. For each year you wait, your benefits can increase by approximately 8% due to delayed retirement credits. Although the increase stops once you turn 70, the added amount can be substantial, especially over a long retirement period.
If you haven’t yet started claiming your benefits and you’re still within the window to delay, consider doing so to maximize your monthly payments in 2025 and beyond. The extra income could be especially helpful for retirees seeking to offset rising costs in healthcare, housing, and other expenses in the future.
2. Consider Working a Few More Years
Another way to boost your Social Security benefit is to increase your lifetime earnings by working longer. Social Security calculates your benefits based on your highest-earning 35 years of work. If you’re nearing retirement age and have fewer than 35 years of work history, each additional year of work will increase your Social Security benefit.
Even if you have 35 years of earnings, working additional years can still help increase your benefits. If you’re able to replace a lower-earning year with a higher-earning one, your monthly benefit will rise. This is particularly important if your earnings in the years before retirement weren’t as high due to part-time work, unemployment, or other factors.
For those who are able to continue working part-time or full-time beyond their expected retirement date, doing so can provide a nice boost to Social Security benefits, especially for those nearing or at their full retirement age. Additionally, continued work can offer you more financial stability in your retirement years, which can make a substantial difference in the long run.
Additional Strategies for Boosting Benefits
While delaying your benefits and working longer are two of the most straightforward ways to boost Social Security payments, there are other strategies retirees can consider. For example, some individuals may find it beneficial to reduce their taxable income by making contributions to a tax-deferred retirement account like a 401(k) or an IRA. This can not only help increase retirement savings but can also help reduce your adjusted gross income, which may lead to less taxation on your Social Security benefits.
Another strategy to consider is ensuring your Social Security earnings record is accurate. Social Security benefits are based on your reported earnings over the course of your career, so it’s essential that your earnings history is accurate. Review your annual Social Security statement for any discrepancies, and make sure your income has been properly reported.
The Importance of Planning Ahead
Retirement planning is critical when it comes to maximizing Social Security benefits. The earlier you begin to strategize, the better you can position yourself for a comfortable retirement. For those still working, it’s never too late to make adjustments, such as delaying benefits or continuing to work for additional years, to maximize Social Security income.
For many retirees, Social Security will be the backbone of their retirement income. By taking steps now to delay benefits or work longer, retirees can ensure they’re doing everything they can to make the most of their Social Security checks in 2025 and beyond.
For more information on Social Security benefits and how to maximize your payments, visit the Social Security Administration website.
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