Once you retire, you'll likely be pretty reliant on Social Security to cover your expenses. So it's natural to want to get as much money out of the program as you can.
You might think that increasing your monthly Social Security benefit means coming up with a complicated strategy that makes your head spin. But here are a few incredibly simple steps you can take to get more money each month in retirement.
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1. Work at least 35 years
Social Security calculates each retiree's monthly benefit individually. And the amount you're entitled to will be based on your personal earnings history.
However, that formula takes your 35 highest-paid years in the workforce into account. If you don't have 35 years of earnings on record, you'll have a zero factored in for each year you're missing income. If you want more Social Security in retirement, make sure to work for at least 35 years.
That could mean delaying retirement by a year or two if you reach your 60s and are a bit shy of that goal. Or it could mean moving forward with plans to leave your main job but working in some capacity for a few more years to generate income that counts toward your Social Security benefit.
Even if the last couple of years of your career have you earning less money than you did in previous years, some income that counts toward your earnings record is better than having none at all.
2. Check your earnings statement for errors every year
Each year, the Social Security Administration (SSA) issues workers an earnings statement. That document not only lists your annual wages, but also includes an estimate of your future Social Security benefit so you can get an idea of what to expect.
It's important to review your earnings statement every year because an error like underreported income could lead to a lower monthly Social Security benefit in retirement. Thankfully, accessing that statement is simple.
If you're 60 or older, you should receive a copy of that statement in the mail each year. And no matter your age, you can access it by creating an account on the SSA's website.
3. Delay your Social Security claim
You're entitled to your complete monthly Social Security benefit based on your personal wage history at full retirement age . That age is based on your year of birth and is either 66, 67, or somewhere in the middle.
But the SSA will reward you for delaying your claim beyond full retirement age. For each year you do, up until age 70, your monthly benefit will get an 8% boost. This means that if you're eligible for $2,000 in Social Security per month at a full retirement age of 67, waiting until age 70 to file will mean setting yourself up with $2,480 a month, instead.
A larger Social Security check each month could do a world of good for your retirement. So it pays to take these pretty easy steps to snag yourself a higher benefit.
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