If You Understand These 4 Social Security Rules, You're Miles Ahead of Most

Everyone wants the largest Social Security benefit they can get, but a large income might not be in the cards for you. You might think you just have to settle for whatever you can get, but that's not true.

There are several little-known Social Security rules you can leverage to take home as much money as possible. If you understand these four, you're doing way better than most people.

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1. How the government calculates your AIME

The first step in determining your Social Security benefit is calculating your average indexed monthly earnings (AIME). This is your average monthly income, adjusted for inflation, over your 35 highest-earning years. The Social Security Administration plugs this into the benefit formula that applied in the year you turned 62, whether or not you actually claimed at this age.

Understanding how the government calculates your AIME reveals two ways you can boost your checks. First, you can try to increase your income during your working years. However, if you earn more than the taxable wage base ($176,100 in 2025), additional earnings won't boost your benefit checks.

Ensuring you work at least 35 years before retiring is also helpful if you can pull it off. This way, you avoid zero-income years in your benefit checks. Working longer than 35 years could be to your advantage as well if you're earning more today than you did in years past.

2. How your claiming age affects your checks

The Social Security Administration assigns you a full retirement age (FRA) based on your birth year. Yours is 67 if you were born in 1960 or later. Older adults have younger FRAs. You must apply at your FRA if you want the full benefit you're entitled to based on your AIME.

Early claiming reduces your checks by 5/9 of 1% per month for your first 36 months and 5/12 of 1% per month thereafter. So those who sign up right away at 62 get 30% less than they would have if they'd waited until their FRA of 67 to apply.

You can also delay Social Security beyond your FRA and your checks will grow by 2/3 of 1% per month until you turn 70. This could add up to 24% to your benefit if your FRA is 67.

Generally, those with average or long life expectancies who can afford to delay Social Security get a larger lifetime benefit by waiting to sign up. But those with short life expectancies or little personal savings might prefer to sign up earlier.

3. How the earnings test works

You could lose money to the Social Security earnings test if you earn more than a certain amount from your job while claiming Social Security under your FRA. In 2025, you lose $1 for every $2 you earn over $23,400 if you'll be under your FRA all year. If you'll reach your FRA in 2025, you only lose $1 for every $3 you earn over $62,160. Only income earned prior to your birth month counts in the latter case.

For some, the earnings test could take all of their Social Security checks. But that money isn't gone forever. When you reach your FRA, the government increases your benefit to account for what it withheld from you before.

4. How spousal benefits work

If you're married and your partner is eligible for a Social Security retirement benefit, you could be eligible for a spousal benefit. This is worth up to one-half of what your partner qualifies for at their FRA. So, for example, if they qualify for a $2,000 retirement benefit at their FRA of 67, you'd qualify for a $1,000 spousal benefit at your FRA.

You may not get a spousal benefit, though, if your own retirement benefit is larger. The Social Security Administration only pays you the larger of the two.

You can't claim a spousal benefit until your partner has signed up for benefits. The only exception is if you were married to your ex for at least 10 years and have now been divorced for at least two years. As long as you haven't remarried, you can claim a spousal benefit on your ex's work record, even if they haven't signed up. Ex-spousal benefits are not available to those who were married for less than 10 years before divorcing.

You are allowed to claim spousal benefits early, but you'll lose 25/36 of 1% per month for the first 36 months and then 5/12 of 1% per month thereafter. So you could reduce your checks by up to 35% if you apply as soon as you turn 62. Your spousal benefits stop growing when you reach your FRA, so there's no incentive to delay them until 70.

These rules may not all apply to you right now, but it's worth keeping them in the back of your mind anyway. Understanding how your choices affect the benefits you receive can help you make decisions that maximize your Social Security checks. If you have any questions about your specific situation, contact the Social Security Administration for personalized advice.

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