How to Maximize Your Social Security Benefits
Social Security plays a central role in retirement income for many Americans, but the amount you receive is not fixed. The system is designed to reward certain behaviors and work patterns, meaning your decisions today can significantly impact your lifetime benefits. Below are key strategies to help you maximize your Social Security.
1. Eliminate Years with Zero Earnings
Social Security calculates your benefit based on your highest 35 years of earnings (adjusted for inflation). If you worked fewer than 35 years, the missing years are filled in with zeros—dragging down your average.
Even a few additional years of part-time work in your 60s can replace a zero, often increasing your monthly benefit for life.
For example, assume an individual has 34 years of earnings averaging ~$75,000 per year. Out of the 35 years, they will have 1 month that has zero earnings. Their Social Security benefit at full retirement age (assumed 67) would be $2,831 per month or $33,972 per year.
Now, assume they work an additional year at their same earnings level to fill up all 35 years. In this case, their benefit would increase to $2,897 per month or $34,764 per year.
That’s an increase of almost $800 per year for life.
2025-08-21 Worker with 35 Years SS Earnings2. Max Out the Bend Points
Social Security benefits are determined by a formula that applies different percentages (ie. 90%, 32%, 15%) to your Average Indexed Monthly Earnings (AIME) at certain thresholds, known as bend points.
- The first bend point (low-income earnings) gets the highest return—90 cents for every dollar.
- The second bend point applies a 32% factor, and the third bend point just 15%.
Working part-time to fill out all of the 90% bend points provides the most bang for your buck.
3. Delay Benefits
You can claim Social Security as early as 62, but delaying increases your benefit. You can delay up to age 70.
If you were to delay your benefit to age 70, you’ll collect nearly 76% more than at age 62.
For example, if your social security benefit at age 62 is calculated to be $2,000 per month, your age 70 benefit could be as high as $3,520 per month.
That’s $1,520 more per month!
4. Coordinate Spousal Benefits
Married couples can enhance household Social Security income by carefully timing their claims:
- The lower-earning spouse may benefit most from claiming earlier, while the higher earner delays for maximum credits.
- Survivor benefits are based on the higher-earning spouse’s benefit, making their decision to delay particularly valuable.
5. Consider Tax Efficiency
While not directly increasing the benefit amount, managing withdrawals from IRAs or Roth accounts alongside Social Security can help reduce taxes. Up to 85% of your Social Security benefits may be taxable, depending on your other income. Strategic planning may keep more of your benefit in your pocket.
Final Thoughts
Maximizing Social Security isn’t about one decision—it’s about a series of choices that fit your financial and family situation. Eliminating zero years, strategically working around bend points, delaying benefits for higher payouts, and coordinating spousal strategies can add up to thousands of extra dollars over your lifetime.