The average retiree leaves $111,000 in Social Security benefits on the table — simply by claiming at the wrong time. The decisions you make about when and how to claim will affect your income for the rest of your life. Here are 5 strategies to get every dollar you are owed.
1. Delay Until 70 If You Can
Your benefit increases by 8% per year for each year you delay past full retirement age (67 for most), up to age 70. This is a guaranteed, inflation-adjusted, government-backed 8% return. No investment offers this combination of safety and return. A $2,500/month benefit at 67 becomes $3,100 at 70 — $7,200 more per year, every year, for life. If you live to 90, that is $144,000 in additional benefits. The break-even point is around age 82: if you live past 82, delaying wins. Given that the average 65-year-old woman today will live past 86, delaying is the right call for most. The caveat: you need savings to cover the gap years from 67-70 without the benefit. If you have the savings, delay. If you need the income to pay rent, claim earlier — survival trumps optimization.
2. Spousal Coordination: The Higher Earner Delays
For married couples, the higher earner should delay to 70; the lower earner can claim earlier (at full retirement age or even at 62 if needed). The reason: when the first spouse dies, the survivor receives the HIGHER of the two benefits. By maximizing the higher earner’s benefit, you are also maximizing the survivor benefit that the remaining spouse will live on. The lower earner’s benefit provides income during the delay years; the higher earner’s maximized benefit provides longevity insurance for both. This is the single most important Social Security strategy for married couples, and most financial planners will tell you it is worth tens of thousands of dollars over a retirement.
3. Divorced? You May Be Eligible for Ex-Spouse Benefits
If you were married for at least 10 years and are currently unmarried (or remarried after age 60), you can claim benefits based on your ex-spouse’s earnings record — up to 50% of their full retirement age benefit. This does NOT reduce their benefit or even notify them. Your ex-spouse does not need to have claimed their own benefit yet (as long as you have been divorced for at least 2 years and they are eligible). This is relevant for divorced women who took time off work to raise children and have lower earnings records than their ex-husbands. The spousal benefit may be significantly higher than your own benefit. Check this before claiming — the Social Security Administration will not tell you about this option unless you ask.
4. Widowed? Consider Survivor Benefits First
Widows and widowers can claim survivor benefits as early as age 60 (50 if disabled). The strategy: take the survivor benefit early (reduced, but income now) while letting your OWN benefit grow until 70 with the 8% delayed retirement credits. Then switch to your own higher benefit at 70. You can switch between survivor and retirement benefits — they are independent. Many widows do the reverse (take their own benefit early and survivor later), which leaves significant money unclaimed. If you are recently widowed, visit a Social Security office and ask them to calculate both strategies before you decide. The difference can be $50,000+ over a lifetime.
5. Working While Claiming? Watch the Earnings Test
If you claim Social Security before full retirement age AND continue working, the SSA will withhold $1 of benefits for every $2 you earn above $22,320 (2026 limit). In the year you reach full retirement age, the limit rises to $59,520 and the reduction falls to $1 for every $3. After full retirement age, there is no earnings limit — you can earn any amount without reducing benefits. The withheld benefits are not lost — they are recalculated into your benefit at full retirement age. But the earnings test can come as a shock if you claim at 62 thinking you will get the full check while still working a $40,000 job. If you plan to work past 62, strongly consider delaying benefits until at least full retirement age, or reduce your work hours to stay under the limit.
Disclosure: Educational content only. Visit ssa.gov or consult a financial planner for your specific situation.
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