The top trick to maximizing your Social Security benefits that most retirees don't take advantage of
For many Americans, Social Security is the financial backbone of retirement, but while the program promises income, the actual size of those monthly checks is far from guaranteed.
The amount you receive depends not only on how much you earned during your career but also on when you choose to file for benefits.
The surprising reality is that a single decision could dramatically increase your retirement income, yet only a small fraction of retirees take advantage of it.
Why delaying until age 70 can be a game-changer
Although you can claim Social Security as early as age 62, doing so locks you into a permanently reduced benefit.
Filing before your full retirement age (FRA), which is 67 for anyone born in 1960 or later, can cut your monthly payments by up to 30%. By contrast, waiting until 70 comes with a powerful incentive: an 8% increase in benefits for each year you delay past your FRA.
Consider this example: “If you qualify for a $2,000 monthly benefit at 62 and have an FRA of 67, waiting until 70 could give you $3,543 per month — more than a $1,500 difference. This doesn’t include cost-of-living adjustments (COLAs), so the actual benefit you could get at 70 would likely be higher.”
The math is so compelling that a National Bureau of Economic Research survey concluded “more than 90% of Americans would get their largest lifetime benefit by waiting until 70 to sign up. Yet only about 10% of people actually do this.”
Why most retirees don’t wait, and what you can do about it
If the financial reward for waiting is so large, why do so few people maximize it? For many, the answer is simple: they can’t afford to.
Some retirees rely heavily on Social Security to cover everyday expenses. Delaying until 70 may not be practical without significant savings or the ability to continue working.
Others face health concerns. Those with shorter life expectancies often prefer to claim earlier, ensuring they receive at least some benefit.
However, claiming early can also reduce survivor benefits for a spouse, a factor worth considering in family financial planning.
Importantly, delaying doesn’t have to be all-or-nothing. Even waiting a year or two beyond FRA can provide a meaningful bump in monthly income.
Small adjustments, like working part-time longer or saving more aggressively in your 60s, can help bridge the gap until benefits begin.
The overlooked Social Security “bonus”
Many retirees underestimate the impact of timing on lifetime income. As one financial tip highlights: “One easy trick could pay you as much as $23,760 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after.”
While delaying until 70 isn’t possible for everyone, it remains the most effective strategy for securing higher guaranteed income in retirement. For those who can manage it, this underused trick could be the key to financial stability for decades to come.