How to maximize Social Security benefits for retirement

If you’re approaching retirement, you might be asking yourself: How do you maximize Social Security benefits to ensure a more comfortable and financially secure future? Whether you’re already in retirement — or simply planning ahead — it is important to know how you’ll manage your daily expenses and other financial obligations. Considering that Social Security makes up 31% of income for people over age 65,¹ these benefits may play a crucial role in your retirement funds. With the cost of living continuously increasing, this may leave those receiving payments on the lower end in a financially vulnerable situation.

Managing your Social Security benefits for retirement involves strategic planning around when and how you claim, as well as understanding how your income, work history, and marital status affect your benefits. Here are some effective ways to do help you boost your Social Security benefits:

1. How to increase your Social Security benefits by delaying claiming benefits

Maximizing your Social Security benefits starts with understanding the full retirement age (FRA). Your FRA may vary depending on your birth year, but it may fall between 66 and 67. You can check your FRA using the Social Security Administration’s (SSA) Retirement Age Calculator.

The earliest age to start receiving Social Security retirement benefits is 62; however, the amount you receive will be less than your full retirement benefit amount. For example, if you retire at your FRA in 2025, your maximum benefit would be $4,018, compared to $2,831 if you retire at age 62.²

If you delay claiming your benefits beyond the FRA, they will increase a certain percentage each month until you reach age 70. Doing so can increase your monthly benefits by up to 8%,³ boosting your earnings in the long run.

2. Work at least 35 years

The SSA uses your highest 35 years of earnings to calculate your Social Security retirement benefits. If you worked for fewer than 35 years, the SSA fills those gaps with zeros, which lowers your average and reduces your benefits.⁴

By working longer or seeking a higher-paying job, you can help make up for lower-earning years and further increase your benefits in retirement. Since your working years are averaged when calculating your benefits, continuing to work can help increase your average benefit amount.

If you are self-employed, you also want to ensure you are reporting enough earnings to maximize your Social Security benefits. While some business owners or self-employed workers may lower their taxable income to minimize taxes, this can also reduce your Social Security benefits in retirement.

3. Earn more over time

As mentioned above, the SSA uses the earnings from your working years to determine your benefit amount. The more you earn, the higher your benefits will be in retirement. However, there is a limit on the amount of your earnings that are taxable by Social Security, known as the “maximum taxable earnings,” which is $176,000 in 2025.⁵

You may want to start keeping track of your annual earnings, seeking promotions, a side income, or part-time work to boost your income base and your benefits. This can help replace your lower-earning years with your higher-earning ones and maximize your Social Security income in retirement.

You can also consider opening a high-yield savings account to make the most of the money you’re not spending now. Options like high-yield savings accounts or certificates of deposit can help make the most of your savings. The Raisin marketplace is here to help you boost your savings potential.

4. Coordinate with your spouse

If you are married, you can choose between your own benefits or spousal benefits, which can potentially boost your Social Security income. If you claim spousal benefits, you can earn up to 50% of your partner’s annual benefits once you reach FRA.⁶

To make the most of these benefits, you can consider having the spouse with lower earnings claim their benefits earlier so that the higher-earning spouse’s benefit amount continues to grow. When the higher-earning spouse turns 70, then they can switch to claiming their benefits.

Spousal benefits also extend to divorcees who were married for at least 10 years and are unmarried when they apply.⁷

Since claiming spousal benefits can get a bit complicated, it may be wise to consult a retirement financial advisor to explore other options, such as dependent or survivor benefits, and to ensure you are making a well-informed decision.

5. Minimize taxes on your benefits

Once you start collecting your Social Security benefits, it is important to be mindful of your total taxable income and tax bracket. If your income exceeds a certain amount, your Social Security can be taxed up to 85% at the federal level. The annual threshold for 2025 is $25,000 for single filers, or $32,000 for joint filers.⁸

To minimize taxes, consider strategically timed withdrawals from other retirement accounts, like IRAs or 401(k)s, and also keep required minimum distributions in mind. You may also want to consider withdrawing Roth conversions before claiming Social Security to boost your benefits.

6. Avoid the earnings penalty

If you claim benefits before FRA and are still employed, it is important to note that the SSA limits how much additional income you can make in a given year that you collect benefits. The earnings limit for 2025 is $23,400 for those younger than FRA, or $62,160 for those reaching FRA this year.⁹ If you exceed your limit, the SSA will temporarily reduce your benefits, and you may face a penalty.

To avoid any penalties or benefit reductions, you can reduce your working hours or delay benefits until you are no longer above your respective limit.

7. Use SSA tools and seek expert advice

Knowing how to maximize your Social Security payments is one step towards a smart retirement strategy; however, determining your Social Security benefits can be challenging and confusing. The SSA offers online calculators to help you model different scenarios and get a better estimate of how much you can receive.

You might also want to consider speaking with a retirement planner or tax advisor who specializes in Social Security matters to help you better navigate your retirement savings strategy. Since everyone has a unique financial circumstance and different goals for retirement, it is important to tailor your strategy to meet your needs.

Don’t wait until retirement to boost Social Security benefits. By understanding what factors impact your Social Security income, you can start managing your retirement strategy today to ensure greater financial security during your golden years.

If you are worried that your Social Security benefits will not be enough in your retirement or simply want to increase your retirement savings funds, Raisin is here to help. The Raisin marketplace gives you access to various high-yield savings products with competitive interest rates to help maximize your savings potential. Sign up today and get closer to reaching your retirement savings goals!

1. https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf

2. https://www.ssa.gov/faqs/en/questions/KA-01897.html

3. https://www.ssa.gov/benefits/retirement/planner/delayret.html

4. https://www.ssa.gov/benefits/retirement/planner/stopwork.html

5. https://www.ssa.gov/benefits/retirement/planner/maxtax.html

6. https://blog.ssa.gov/do-you-qualify-for-social-security-spouses-benefits-2/

7. https://www.ssa.gov/family/eligibility

8. https://www.irs.gov/newsroom/irs-reminds-taxpayers-their-social-security-benefits-may-be-taxable

9. https://www.ssa.gov/cola/