Unlocking Your Social Security Wealth: A Guide to Maximizing Your Benefits

Careful planning and consideration are the best ways to maximize your Social Security benefits. Ground Picture/Shutterstock

Social Security. We all contribute to that safety net, hoping it will be there when we need it most. Know-how is indispensable when maximizing your Social Security benefits, whether you’re a few years away from retirement or thinking about your golden years.

But let’s face it. Social Security can be a bit confusing. Thankfully, I’m here to help you understand this valuable program.

The Basics of Social Security: A Quick Refresher

Before we dive into the strategies, let’s take a quick look at how Social Security works.

• Your earnings record. A person’s benefits are determined by his or her 35 highest-earning years. You may not receive a payout if you haven’t worked for 35 years, as zeros are included in the calculation.
• Full Retirement Age (FRA). At this age, you receive 100 percent of your calculated benefits. In most cases, FRA is 67 for people born after 1960.
• Claiming your benefits. You can start taking benefits as early as 62, but your payments will be permanently reduced. Conversely, delaying benefits beyond your FRA increases your payments.

Strategies to Boost Your Social Security Payout

With that out of the way, let’s get to the good stuff. The following are ten actionable strategies to maximize your Social Security benefits.

1. Work That 35-Year Grind (But Strategically)

Social Security benefits are only available to workers who have worked at least 10 years. However, your benefit amount is determined by your 35 highest-earning years. Unless you have worked for 35 years, those years are counted as zero, significantly reducing your payouts.