When it comes to income, few sources are more important — or more reliable — than Social Security. And guess what? There are ways to potentially maximize your Social Security benefits, there by increasing your post-retirement income.
The first method for potentially maximizing your benefits is to delay collecting them in the first place. Too many people rush to collect their benefits as soon as they retire. This is sometimes a mistake, especially if you retire early. Technically, you can begin receiving benefits as early as age 62, but if you do, your benefits will be reduced significantly. For example, people born between 1943-1954 would see their payouts permanently reduced by 25%.
Waiting until your “full retirement age” might be a better option—it means you won’t face any reduction. What is your “full retirement age?” It’s the age at which a person may first become entitled to “full” or “unreduced” retirement benefits. This chart gives you the specifics:
| Year of Birth |
Full Retirement Age |
| 1943-1954 |
66 |
| 1955 |
66 and 2 months |
| 1956 |
66 and 4 months |
| 1957 |
66 and 6 months |
| 1958 |
66 and 8 months |
| 1959 |
66 and 10 months |
| 1960 and later |
67 |
The latest you can begin collecting benefits is at age 70, and there’s good reason to hold off until then if you can afford it. Benefit payments go up 8% for every year you wait after you reach your full retirement age up to age 70. In other words, the longer you can keep your hand out of the cookie jar, the more sweets you’ll eventually receive.
