Social Security payments are about $1,978 on average as of January 2025. However, many workers may qualify for a much lower payment. Many Americans do not take into account inflation and soaring prices when they apply for retirement benefits.
However, this could reduce your buying power a great deal if you are on a shoestring budget. If you will soon be 62 years old, there are a few things you should do. Download a free and online Social Security Statement. It will show you your future payment amounts by age in retirement. This will give you an idea of what would be the best age to file and when you can afford it.
1st Effective Way to Boost Social Security
The more taxes you pay to the Social Security Administration, the higher your monthly payment will be as a retiree. That is why it is always best to promote or to look for well-paid jobs even if you do not need that additional money to make ends meet.
Having a higher payment as you work will allow you to pay more taxes to SSA and to save more money. Of course, you will need to ensure that your job pays taxes to SSA.
Some jobs do not pay tax to Social Security, so instead of getting retirement benefits from the Agency, you may get a pension. But what are the other 2 ways to boost benefits before you apply for retirement?
2 More Useful Ways to Increase Social Security
While early filing at the age of 62 can boost your monthly payment by 30%, delaying filing can boost it. Bear in mind that if your Full Retirement Age is 67, because you were born in 1960 or later, this will be the only age when you can get 100% of your benefits.
However, if you are healthy and willing to continue working, you will receive 24% extra if you file for retirement at 70. Social Security can give you delayed credits.
So, each year you work after Full Retirement Age, you get an additional 8% extra. Last but not least, you should work for a minimum of 35 years in jobs covered by SSA. Not doing so reduces your monthly payment. Summing up, to get a payment of up to $5,108 in 2025 you must:
- have jobs covered by SSA
- work for 35 years
- earned the taxable maximum for 35 years too
- delay retirement until you are 70, but no later than that
