Exploring Enhanced Social Security Benefits: Strategies to Maximize Your Entitlements in 2025
Ideally, you'll save enough for your retirement so you won't have to worry about financial stress in your later years. However, there's a good chance you'll also rely on Social Security to some extent.
That's why it's crucial to aim for the biggest Social Security payout possible. And if you play your cards right in the upcoming year, you can set yourself up for a more substantial benefit when you retire. Here are three essential moves to make in 2025.
1. Increase your income
The Social Security Administration (SSA) determines your monthly retirement benefit based on your income. So the more you earn during your career, the more substantial a payday you might receive later on. That's why it's wise to try to boost your income in 2025.
Naturally, a larger paycheck also means more financial flexibility in the short term to cover your bills and even contribute to your 401(k) or IRA. But it could also result in higher Social Security payments in retirement. So, consider improving your job skills to secure a promotion and the corresponding raise.
You should also know that income from a side hustle can also set you up for more Social Security. So even if your salary remains the same throughout the year, earning an extra $5,000 from a successful side business can help you increase your Social Security checks in retirement.
2. Verify your earnings record
It's not a given that the SSA will have accurate earnings data for you on file. And if your income is underreported, it could lead to a smaller monthly benefit later on.
Make sure to check your earnings record in 2025 to ensure that it's accurate. You can do this by creating an account on the SSA's website and accessing your recent earnings statement. This statement will provide you with useful information, such as an estimate of your future monthly Social Security benefit.
3. Keep working instead of retiring and collecting benefits
If you will turn 62 in 2025, you'll become eligible to start claiming Social Security, as that's the earliest age to file. However, continuing to work has its advantages.
First, waiting until your full retirement age prevents a reduction to your monthly Social Security benefit. And even if you reach full retirement age in 2025, delaying your filing beyond this point results in a higher benefit for life. You're financially rewarded for postponing your claim until you turn 70.
Continuing to work at this stage of life can also lead to more Social Security. The SSA considers your 35 highest-paid years of income when calculating your monthly benefit. If you're able to replace a lower-earning year with a higher-earning year, it can result in a more significant benefit for you to enjoy once you decide to sign up.
The decisions you make in the upcoming year could impact the amount of money you receive from Social Security later on. Keep these moves in mind, as they could lead to a more financially secure retirement.
In light of aiming for the largest Social Security payout, increasing your income in 2025 can be beneficial, as the Social Security Administration determines your retirement benefit based on your earnings. Moreover, boosting your income can provide financial flexibility and potentially lead to higher Social Security payments in retirement.
When checking your earnings record in 2025, ensure that the SSA's data is accurate to prevent underreporting, which could result in a smaller monthly benefit. Creating an account on the SSA's website and accessing your recent earnings statement can help you verify this information.
