Social Security Income: How Can You Maximize Your Social Security Benefits?

Have you thought about your social security income as part of your retirement savings? Hopefully, you have, but if not, here are some strategies and things to know to help you maximize your social security benefits.

Work for at least 35 years.

One of the most important things you can do is work for at least 35 years. The Social Security Administration (SSA) totals your earnings from your 35 highest-earning years. It uses an average indexed monthly earnings formula to determine the benefit you’ll receive at your full retirement age. The more you earn during your career, the higher your social security benefits will be in retirement.

Be aware of the Social Security/Medicare gap.

You also need to be aware of the gap between 62-65 years of age when you are social security eligible but aren’t Medicare eligible yet. You can start receiving social security benefits at 62, but you must be 65 to qualify for Medicare.

Consider delaying your Social Security benefit until age 70.

If born after 1960, your full retirement age (FRA) is 67 and this is when you can start accepting social security income. However, you also have the option to delay your benefits until age 70, and can effectively earn an 8% increase in annual return on your available benefits. Figuring out whether to delay your benefits or not can be tricky because we don’t know how long we’ll live. If you expect to live a long life and have another stable source of income, like Pension Fund’s Pension Plan, delaying your benefits may be the right choice. If you have health issues or cannot work for a long time, claiming it earlier might be the right choice.

Social security benefits are complicated and seem daunting, but you want to ensure you make the right decisions for yourself and others involved. Regardless of which options you choose. It’s important to know your benefits and work with a financial advisor or other financial professional, like the Financial Guides at Your Money Line, regarding which options work best for your specific financial situation.

You can easily create your online profile and estimate your benefit at retirement. Visit https://www.ssa.gov/myaccount/ to create your online profile. You can also estimate your monthly pension at retirement on the Pension Fund Member Portal.