How to maximize Social Security benefits

When it comes to retirement, every dollar counts—and one of the most common questions people ask is how to maximize Social Security benefits. What many don’t realize is that the timing and strategy behind when and how you claim those benefits can significantly impact how much you receive over your lifetime.

If you’re wondering how to maximize Social Security benefits, you’re in the right place. In this article, we’ll break down the key strategies that can help you increase your monthly payments, reduce taxes, and make smarter retirement income decisions. Plus, we’ll explain why working with a financial advisor could be the smartest move you make for your financial future.

1. Delay Claiming Your Benefits If You Can

One of the most effective ways to maximize Social Security benefits is by delaying when you begin to take them. While you can start receiving benefits as early as age 62, that doesn’t mean you should.

Here’s why timing matters:

• Claiming at 62 results in a permanent reduction—up to 30% less than your full benefit
• Waiting until your full retirement age (66 to 67, depending on your birth year) gets you 100% of your earned benefit
• Delaying past your full retirement age increases your benefit by about 8% for each year you wait, up to age 70

Example:
If your full retirement benefit is $2,000 a month at age 67, waiting until 70 could increase that amount to $2,480 a month. That’s a meaningful difference over the course of your retirement.

2. Understand Spousal and Survivor Benefits

If you’re married, divorced, or widowed, there may be special Social Security planning strategies available to you that many people overlook.

Spousal Benefits:

• You can claim up to 50% of your spouse’s benefit, even if you never worked
• You must be at least 62 and your spouse must be collecting their own benefits
• You will not receive both your benefit and your spousal benefit—Social Security pays the higher of the two

Divorced Spouse Benefits:

• You may qualify if the marriage lasted at least 10 years and you are currently unmarried
• The rules mirror those of spousal benefits, and your ex does not need to be notified

Survivor Benefits:

• Widows and widowers can collect a deceased spouse’s benefit as early as age 60
• If both partners were eligible for benefits, the survivor generally receives the higher of the two amounts

These options can significantly affect your household income. Many people miss out simply because they didn’t know what they were entitled to.

3. Work With a Financial Advisor to Create a Custom Strategy

Knowing how to maximize Social Security benefits is just one part of the equation. You also need to consider your other income sources, your health, longevity, and tax situation. This is where working with a financial advisor pays off.

A personalized Social Security optimization strategy can help you:

• Avoid costly mistakes
• Minimize taxes on your benefits
• Align Social Security with your other retirement income
• Plan for both you and your spouse’s future

4. Be Aware of Taxes on Your Benefits

Yes, Social Security benefits can be taxed—up to 85% of them depending on your income.

Here’s how it works:

• If you file as an individual and your combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxed
• Over $34,000, up to 85% may be taxable
• For married couples filing jointly, the thresholds are $32,000 and $44,000

This means that retirement income from pensions, withdrawals from traditional IRAs or 401(k)s, and even part-time work can push you into a higher tax bracket.

Saving money for retirement plan. Retirement Conceptual

5. Continue Working Strategically

If you plan to work while receiving Social Security, be cautious. If you’re under your full retirement age and earn above the annual limit ($22,320 in 2024), your benefits will be temporarily reduced.

However, this reduction is not permanent. Once you reach full retirement age, your benefit will be recalculated to give you credit for the months that benefits were withheld.

Tip:
If you’re trying to increase Social Security income without triggering reductions, working with a financial advisor can help you structure your earnings to avoid unnecessary penalties.

6. Review Your Earnings Record for Accuracy

Your Social Security benefit is based on your highest 35 years of earnings. Mistakes on your record—like missing years or incorrect wage reports—can lower your benefit.

Check your record by logging in at ssa.gov. If you find an error, correct it as soon as possible.

7. Coordinate Benefits With Your Spouse’s Plan

If both you and your spouse worked and qualify for benefits, you may be able to take one benefit early and delay the other to grow. This is known as the “split strategy.”

For example:

• One spouse claims at full retirement age
• The other delays until 70 for the increased benefit

This creates income in the short term while maximizing long-term growth.

Final Thoughts

Maximizing Social Security benefits is about more than just picking the right age—it’s about coordinating all the moving parts of your retirement plan. From taxes and spousal benefits to the timing of your claim and your total income picture, the details matter.

If you’re asking yourself how to maximize Social Security benefits, the answer often starts with a conversation. Our team at Guerra Wealth Advisors specializes in retirement income planning and can help you avoid the pitfalls that trip up even the savviest retirees.