Many future retirees are seeking ways to maximize their retirement income. Once retired they may plan to take more trips, they may have more healthcare costs, or they may need to cover their living costs. The good news is that there is a way to increase your social security benefits by 8%.
If you draw Social Security benefits at your full retirement age, which is now between 66 and 2 months and 67 years old, you will receive your regular benefit amount. If you defer starting your Social Security benefits until after you reach the full retirement age your benefits may increase by 8% for the year. If you delay benefits, you will earn one credit for each month you wait. For each month you defer you will increase your benefits by 2/3 of 1%, which equates to an 8% increase if you wait another year before drawing benefits.
The regular Social Security benefit is based on your 35 highest earning years. You can defer benefits until the age of 70. Your benefits will increase 8% for each year you defer. This is a 24% increase over the regular benefit.
You do have to keep in mind that when you defer the Social Security benefits, you will need to have another source of income to cover the deferral period. Social Security benefits are guaranteed to last for the rest of your life. This additional income can make a difference later in life when you may need it the most.