What can reduce your Social Security retirement benefits? What to avoid in order to maximize your monthly payment

In the United States, eligible individuals can begin receiving Social Security retirement benefits after they turn 62, with the program providing vital financial support to over 50 million people every month.

The size of a recipient’s monthly payments depends on their work history, employment status and personal circumstances. This means that actions you take during your working life have a direct impact on your Social Security payments in retirement.

There are a few things that can work to reduce your benefits, so try to avoid the following if you want to maximize your post-retirement income:

Applying too quickly

The swiftest way to reduce your retirement benefits is by claiming the support prematurely. Although you can claim once you reach 62, you should always try to wait until you hit full retirement age (FRA) at the earliest.

For people born between 1943 and 1954, the FRA is 66. That threshold increases by two months every birth year until 1960, when it reaches 67.

If you can hold off on applying until you turn 70, you’ll be eligible for the maximum monthly payment available to you. In 2026, the highest possible amount you can claim by waiting until you’re 70 is $5,181.

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Working while receiving benefits

You can start receiving retirement benefits while still working, but doing so before you reach your FRA will result in some of your benefits being withheld. This will not lower your lifetime benefits entitlement, but does affect the amount you get initially.

When you hit your FRA, the Social Security Administration (SSA) will recalculate your monthly entitlement and you should start to receive larger payments. “Benefits withheld while you continue to work are not lost,” the SSA says. “They are added to your monthly benefit once you reach FRA.”

Working for fewer than 35 years

Your Social Security entitlement is based on your 35 highest-earning years (adjusted for inflation). If you have not worked for 35 years when you initiate your retirement-benefits claim, you will be given a wage of $0 for the missing years. This will lower your primary insurance amount (PIA) and reduces the size of your monthly retirement checks.

Retiring when your earnings are high

As a general rule, the more you earn during those 35 years, the larger your Social Security retirement checks will be. If you find yourself earning more as your approach the end of your career, you could increase your PIA by continuing to work longer before applying for retirement. The additional years of higher earnings will replace your lowest-earning years and increase your monthly benefit amount.

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