8 Tips on Maximizing Social Security Benefits for Seniors

The average social security retirement benefit in June 2020 was about $18,170 a year. If you are near retirement, you may be wondering how to get more than the average. Luckily, there are ways you can maximize your social security benefits.

Read our guide to learn about eight tips on maximizing social security benefits for seniors.

1. Don't Always Take the First Advice

Talking to a representative that works for the Social Security Administration (SSA) can cost you money. If you want to maximize your social security benefits, find a source that can help you get the best out of your return.

You may believe that going to the source will be the best option, but this is not always the case. They may not be able to accurately tell you when the right time to file is because these representatives can be overworked or undertrained. This leads to you receiving false information that can cost you thousands of dollars.

If you make this mistake, you may not be able to fix it later on. The SSA will often rule that social security claims cannot be reversed. If you do want to consult with the SSA, get a second opinion too before you file.

2. Withdraw the Social Security Application

If you end up claiming and you regret it, you can use this option to make the right claim for you. Before 12 months is up from the time you claimed, you can withdraw your social security application. You will have to repay any benefits you had already received.

Once you have repaid the amount you already received, you can claim a refund for any taxes paid from those benefits. This will reverse the process and make it seem as if you never claimed at all. This option can help you receive your maximum social security benefits if you file without understanding the consequences.

3. Suspend Social Security Benefits

One of the most popular social security benefits for seniors is to voluntarily suspend benefits. This can only be done once you have reached the full retirement age. You won't need to repay any benefits you have already received and it can increase future benefits.

If you have begun receiving social security benefits early but regret it, you can opt to suspend the benefits. This can be done if 12 months have already passed since you began receiving benefits.

4. Maximize Household Benefits

Social security for couples differs from individual social security. If you have a spouse you need to think about how your claims will affect them. You could end up having to change your benefits strategy to maximize your social security benefits.

Your decision on claiming will affect your spouse. For example, if you opt to suspend your benefits, your spouse won't be able to receive social security benefits.

It is common to wait to claim until age 70 to maximize household benefits. However, this is not the best option for those who cannot afford it.

If you have children who are minors, claiming before age 70 can allow you to receive more benefits in the long run. Even though you claim when you are younger, you will receive dependent benefits.

A dependent child benefit is half of the claimer's full retirement benefit. This amount stays the same even if the parent files early.

If you are the younger spouse, you may be eligible for a spousal benefit. The additional benefits you can receive will offset the amount you receive for filing early.

5. Know Every Benefit You Have

The SSA pays much more than just the benefits a worker is owed. They pay survivor benefits, divorced spousal benefits, child benefits, divorced survivor benefits, spousal benefits, and more. You may be entitled to these benefits, but social security will not inform you if you are eligible.

Separate benefits are available if you are proactive. If you have lost your spouse before retirement, you could receive a survivor benefit. Later, you will be able to switch to your own worker's benefits once you have reached the retirement age.

These additional benefits are known as unusual approaches to boost your overall social security benefits. Because of this, restrictions and exceptions may apply. If you want to take advantage of these approaches you need to understand the restrictions that apply, know if you fulfill all the requirements, and think about unintended consequences.

6. Don't Claim Before Your Full Retirement Age

There are circumstances where you may need to claim before your full retirement age. However, if you can go without doing this, you will be in better shape.

If you begin payments before your full retirement age, your monthly benefits get reduced. Depending on your full retirement age, you could be reducing your benefits by up to 30% each month if you file early.

7. Estimate Your Longevity

Your claiming strategy will be most effective depending on how long you live. For example, if you have a chronic illness, you may need to claim benefits right away. However, you can also leave your benefits so that your surviving spouse gets more.

If you are a senior in relatively good health and have a history of long lives in your family, you can delay claiming your benefits. This means you will receive a greater social security payment amount when you are older.

8. Claim Early Due to Health Concerns

Social security for couples may need to be claimed early if there are health concerns. Both parties may need to claim early if they have short life expediencies and have missed the Medicare enrollment period.

Your full retirement age will depend on the year you were born in, but benefits can be available at age 62. If you think you will have a shorter retirement period than most, it would be beneficial to claim early.

If you have a shorter life expectancy and have no choice but to claim early, this will not be an issue. You can still increase lifetime benefits by claiming early if you have shorter life expectations.

Social Security Benefits Explained

There are a lot of different ways to maximize your social security benefits. Following this guide will ensure that you receive the most out of your payments as a senior. These eight tips will put you on the right track.

For more information about social security benefits, review your plan options today.