Social Security plays a crucial role in the financial well-being of millions of retired Americans. As of June, the average monthly payment stands at $1,918, offering essential support to those no longer working. But over time, the rising cost of living has quietly chipped away at the actual value of these benefits—by about 20% since 2010—even though Cost of Living Adjustments (COLAs) are applied each year.
To make the most of your Social Security benefits, timing and strategy are key. Starting your payments too early can lock in lower checks for life, but waiting a few more years or continuing to work—especially in higher-paying roles—can significantly boost your monthly income. Whether it’s by delaying your claim or working a few more years to replace lower-earning ones, small choices now can mean a much stronger retirement future.
How to Maximize Your Social Security Benefits
Social Security is more than just a safety net—it’s a major source of income for many Americans in retirement. However, despite regular adjustments for inflation, the true buying power of these benefits has dropped by 20% since 2010. So, if you’re relying on Social Security to support you later in life, making smart decisions about when and how to claim can make a big difference.
One of the most effective ways to increase your monthly benefit is by delaying the age at which you start collecting. While you can begin receiving payments as early as age 62, doing so can reduce your monthly amount by up to 30% if your Full Retirement Age (FRA) is 67. On the other hand, if you wait until age 70, your benefits grow by about 8% each year beyond FRA. This could mean collecting up to 124% of your full monthly amount by the time you hit 70. To put it into numbers, the maximum benefit in 2024 is $2,710 if you retire at 62, $3,822 at FRA, and $4,873 at age 70—a nearly 80% difference.
Another important factor is your earnings record. Social Security uses your 35 highest-earning years to calculate your benefit. If you haven’t worked for 35 years or had some low-earning years, working longer can help. Each extra year of higher income can replace a lower-earning year, which could push your average earnings—and your benefit—upward. Even side jobs or freelance work, like earning an extra $10,000 a year from dog walking or part-time consulting, can count toward your record and help you increase your benefit.
While not everyone can afford to delay retirement or keep working, those who can may be rewarded with significantly higher Social Security payments for life. Extending your working years, even slightly, and delaying when you claim benefits can put you in a much better financial position in retirement. It’s all about smart planning and making decisions that support your future stability.
