Podcast Episode 443: How Can I Increase My Social Security Benefit?
Prefer to watch? Click here to watch and listen on YouTube.
Social Security is one of the biggest financial decisions you’ll ever make. But knowing when to file for benefits is rarely as simple as “take it right at 62” or “delay as long as possible.” With hundreds of potential filing combinations and real consequences, you cannot afford to make guesses.
In this episode of Money Wisdom, Nicholas J. Colantuono, CFP® and Eric Hogarth, CFP® discuss four key factors that can heavily influence your benefit amount.
1. Work for At Least 35 Years and Increase Earnings
To qualify for Social Security, you need to work at least 40 quarters, which equates to about 10 years. However, the Social Security Administration (SSA) calculates your benefit using your highest 35 years of earnings.
If you work longer than 35 years, those later years can replace lower-earning years in the calculation. This can ultimately increase your average earnings and therefore your benefit.
2. Take Advantage of Spousal or Survivor Benefits
If you’ve been married for at least 10 years, you generally qualify for spousal benefits. You can receive either your own Social Security benefit or about half of your spouse’s benefit. However, when one spouse passes away, the surviving spouse receives the larger of the two benefits, not both. This is why coordinating filing strategies between spouses is so important.
3. Be Aware of Taxes and Medicare Deductions
Many retirees are surprised to learn that their Social Security benefits may be taxable depending on their overall income. In fact, up to 85% of your benefit could be subject to taxation. In addition, the SSA often deducts Medicare premiums directly from your payments if you’re enrolled.
4. Consider the Current Earnings Limit
If you take Social Security before full retirement age and continue to work, you could face a temporary penalty. The SSA will deduct $1 from your benefit payments for every $2 you earn above the annual limit, which is $24,480 as of 2026. In some cases, working while collecting benefits may make sense, but in others it may not be the most efficient strategy.
You’ve spent decades paying into the system, and you deserve to have a thoughtful plan for how you’ll begin drawing those benefits. Your claiming strategy can make a meaningful difference in the total amount you receive over your lifetime.
Need help making the right Social Security decisions? Get your free Social Security Decisions guide by texting “SOCIAL” to 800-757-0436.
