A Social Security calculator can help you estimate the payments you’ll receive, but how do you ensure that you’re not shortchanging your future self? Whether you have a few months or a few decades until retirement, here are 10 tips for maximizing your Social Security benefits.
1. Understand How the Government Calculates Social Security
Many Americans assume that Social Security benefit amounts are based on your entire working career. In reality, your payments are based on your earnings from the 35 highest income years. If you have not worked for 35 years, every year you didn’t work will reduce your benefits. Want to avoid those zeros? Think about working a few extra years to raise your lifetime income average. In addition to helping fill your savings account, this should boost your Social Security benefit.
2. Know Your Full Retirement Age
Income is not the only factor that determines your Social Security benefit. Age is another big one. Normal or full retirement age is the age at which you can claim the full Social Security retirement benefit you’re eligible for. The Social Security Administration determines your full retirement age based on the year you were born. For most people, the magic number falls somewhere between 65 and 67. When you know your full retirement age, you can make a better-informed decision about when to start claiming Social Security.
