One Social Security Trick That Could Boost Your Benefits in 2025!

Race Day Live Retirement can be expensive, and many Americans rely on Social Security to help cover their expenses.

A 2024 report from the Transamerica Center for Retirement Studies found that 43% of baby boomers will depend on Social Security as their main source of income.

Whether you are close to retirement or still have years left in your career, it is essential to understand how Social Security fits into your financial plans. Here are the key moves every worker should make in 2025 to secure their future.

1. Know Your Full Retirement Age (FRA)

One of the most important things you need to know is your full retirement age (FRA). Your FRA is the age when you can start receiving your full Social Security benefits based on your work history.

Many Americans believe their FRA is 64, but in reality, it falls between 66 and 67, depending on your birth year. If you claim benefits before your FRA, your monthly payments will be permanently reduced.

For example:

• Claiming at 64 (with an FRA of 67) reduces benefits by 20%.
• Claiming at 62 reduces benefits by 30%.

2. Check Your Estimated Benefit Online

If you haven’t already, create a mySocialSecurity account and check your estimated benefit amount. This will help you understand how much you can expect in retirement.

Your benefit depends on your work history, earnings, and the age at which you claim.

3. Consider the Impact of Early Filing

Filing early means lower monthly payments. For instance, if your FRA is 67 and you claim at 62, you could lose about 30% of your benefits.

The average monthly Social Security check in December 2024 was around $1,975. A 30% reduction would mean losing about $593 per month or over $7,100 per year.

However, early filing may be a good option if:

• You have health issues and may not live long enough to benefit from delaying.
• You need the money right away to cover expenses.
• You have other financial sources to supplement your income.

4. Understand Delayed Retirement Credits

If you delay filing past your FRA, your benefit increases by about 8% per year until age 70. This can add up to a significant increase in your monthly payments.

For example, if your FRA is 67 and you wait until 70 to claim benefits, your monthly check could be 24% higher. This can provide extra financial security in your later years.

5. Plan With Your Spouse

If you are married, consider how you and your spouse can maximize Social Security. You might choose for one spouse to claim early while the other delays filing to increase their benefit.

This strategy can help balance immediate income with long-term financial stability.

Read More:

• 62 and Ready to Claim Social Security? Here’s Why It’s Not a Bad Idea?
• Retirees, Get Ready: February 2025 Social Security Payments Are Coming Soon

6. Think About Taxes on Your Benefits

Social Security benefits may be taxed based on your total income. If you earn above a certain amount, up to 85% of your benefits could be taxable.

Understanding this can help you plan your finances better.

7. Adjust Your Retirement Plan

Knowing how Social Security fits into your overall retirement strategy is crucial. Consider consulting a financial planner to ensure you are making the best decisions for your future.

Final Thoughts

Social Security is a key part of retirement planning, and the decisions you make can have a long-lasting impact.

By understanding your full retirement age, checking your estimated benefits, and planning wisely, you can ensure a more secure future.

Whether you choose to file early, delay, or coordinate with your spouse, knowing your options will help you make the best choice for your financial well-being.

Reference

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