How I Maximize Social Security Benefits Using the Rules Most People Ignore
When I sit down with someone who wants to maximize their Social Security, the first thing I explain is this: you can’t make smart decisions without knowing how your benefit is actually calculated. Once you understand the math, the strategies become a lot clearer.
Social Security is funded through payroll taxes 6.2% from your paycheck and another 6.2% from your employer, up to $168,600 in earnings for 2024. Those contributions fund the program, but more importantly, your earnings history determines the size of your future benefit.
Your benefit is based on the highest 35 years of earnings. If you don’t have a full 35 years, the missing years are counted as zeros. That alone can significantly lower your benefit. Even part-time work late in your career can replace a zero year and raise your lifetime average. Every one of those years is indexed for inflation so your past earnings reflect today’s value.
From there, Social Security uses bend points tiers that determine how much of your income actually counts toward your benefit. In 2024, the first $1,174 of monthly earnings counts at 90%. The next tier, from $1,174 to $7,078, counts at 32%. Anything above $7,078 counts at only 15%. This structure favors lower-income earners and tapers as income increases.
All of this math results in your Primary Insurance Amount (PIA), which is the benefit you’ll receive at full retirement age somewhere between 66 and 67 depending on your birth year. Filing earlier or later simply adjusts that number up or down.
Once the basics are clear, I use four core strategies to help people increase their future benefits.
First, I make sure they have 35 full years of earnings. Even one zero in the record can drag down the benefit, and replacing it can make a meaningful difference.
Second, I evaluate the timing of claiming. Before full retirement age, benefits grow about 5% to 6.67% per year. After full retirement age, benefits grow 8% per year until age 70. For someone in good health, delaying benefits can dramatically increase lifetime income.
Third, I look at spousal benefits. If your spouse has a higher benefit, you’re eligible for up to 50% of theirs. Many people miss out on this simply because they don’t understand the rule. In couples where one spouse stayed home or earned less, this strategy becomes especially valuable.
Finally, I consider survivor benefits. A surviving spouse can receive 100% of the higher earner’s benefit. This can be claimed as early as age 60, even though taking it early reduces the amount. Sometimes taking survivor benefits early while letting your own benefit grow until 70 creates a much stronger long-term income plan.
When you understand how Social Security is calculated and how filing age, earnings history, spousal rules, and survivor benefits work together you gain control over one of the few guaranteed income sources in retirement. These strategies aren’t difficult, but they do require intention. And over a lifetime of retirement, the difference can add up to tens of thousands of dollars.
You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.
Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.
