This Is a Key Way to Increase Social Security -- but Not Everyone Can Do It

Key Points

• You can increase your monthly check by delaying when you claim benefits.

• However, delaying isn't possible for some people for financial reasons.

• Those claiming spousal benefits are not eligible for delayed retirement credits.

• The $23,760 Social Security bonus most retirees completely overlook ›

Many older Americans depend heavily on Social Security to help them have a financially comfortable retirement. While Social Security alone cannot support retirees, it is still an important income source since benefits are guaranteed not to run out and are also protected against inflation.

For those who want to make the most of this vital income source, taking steps to maximize monthly benefits can be a no-brainer. And the good news is, there's one surefire way to increase the money Social Security provides.

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However, while taking this step can be a great option, it is not available to everyone. Here's why.

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This is a guaranteed way to increase Social Security benefits

If you want a larger Social Security check, you can guarantee yourself one by waiting to claim benefits as long as possible until age 70. Retirees have a full retirement age when they become eligible for their standard benefit. For anyone born in 1960 or later, that age is 67. However, benefits are available sooner, as early as 62, and a benefits claim can also be delayed.

Those who want a bigger benefit so they have more Social Security to supplement their retirement plans are going to be able to get it by delaying. Each month you wait beyond your FRA will result in a delayed retirement credit, and those credits increase your benefits by 2/3 of 1% per month.

Delayed retirement credits add up faster than you'd think. While they can only be earned until age 70, that still means you can increase your monthly benefit by a whopping 24% if your FRA is 67. And if you were born earlier and have an earlier FRA, you can increase your benefit a little more.

Not everyone can take advantage of this option

Getting a bigger Social Security check can helpomake your 401(k) and other retirement accounts last longer by relying on them less, but it's not an option for everyone.

If you are planning on collecting Social Security spousal benefits, for example, you cannot earn delayed retirement credits. They are not available on spousal benefits. You cannot collect more than 50% of the primary earner's benefit.

So, as long as your higher-earning spouse has claimed their retirement checks (a prerequisite to you claiming spousal benefits), there's no advantage to waiting beyond your FRA, and you may as well claim your checks then to get them started.

Of course, even people who are eligible for delayed retirement credits may find it difficult or impossible to wait to claim until 70, even if there is a big payoff for doing so.

You'd need enough money in your retirement accounts to live on without Social Security in order to do that, or you would need to delay your retirement age until 70, which isn't always possible, depending on your health status and your work opportunities.

Still, if you are claiming retirement benefits and would be eligible to increase them by waiting to claim benefits beyond FRA, it may very well be worth doing that to give yourself more retirement security later.

During your retirement planning process, think about the additional financial security this delay could generate, and consider carefully whether you want to try to find a way to make putting off your claim possible to get the bigger payouts in your later years.

The $23,760 Social Security bonus most retirees completely overlook

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