If You Don't Do These 3 Things, You're Leaving Social Security Benefits on the Table

Key Points

• Working at least 35 years before signing up for Social Security helps you avoid zero-income years in your benefit calculation.

• Increasing your income today is likely to lead to larger Social Security checks in retirement.

• Choose your claiming age strategically based on your life expectancy and financial situation.

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

You probably wouldn't knowingly accept a smaller Social Security benefit than you were entitled to. Yet you'd be surprised how many people walk away with smaller checks than they could've qualified for, simply because they didn't understand the key factors that influence their benefits.

Sometimes, an innocent misunderstanding costs you tens of thousands of dollars over your retirement and adds to the already substantial financial burden on your shoulders. But if you do the following three things, it's a pretty safe bet that you won't miss out on any Social Security benefits there for the taking.

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1. Work at least 35 years before retiring

The Social Security Administration bases your benefit on your average monthly income, adjusted for inflation, over your 35 highest-earning years. This is known as your average indexed monthly earnings (AIME).

It's possible to claim benefits with a work history of just 10 years, but you might be disappointed with how little you get if you sign up before crossing the 35-year mark. You'll have zero-income years factored into your benefit calculation, and each one can drop your monthly benefit by several dollars.

Sometimes, there are factors standing in your way, like a serious illness or caretaking requirements, that force you to leave the workforce before you hit 35 years. But whenever possible, try to work for at least that long. Longer could be even better if you're earning more now than in the past. Your more recent, high-income years will push out the earlier low-income years included in your AIME.

2. Do what you can to boost your income today

Since your benefit is based in part on how much you've paid Social Security taxes on during your career, anything that increases your income today is likely to boost your Social Security benefit in the future. That could mean negotiating a raise, starting a side hustle, or finding a better-paying job with another company.

The only people this tip won't help are those already earning more than the taxable wage base -- $176,100 in 2025. You don't pay Social Security taxes on any income over this amount, so it won't affect your future benefits.

The taxable wage base will increase in 2026, though we don't yet know by how much. If you're close to this limit, that's something you may want to pay attention to, as it will affect your tax bill next year and possibly your future Social Security checks.

3. Choose the right time to apply for benefits

If you want the full Social Security benefit you've earned based on your AIME, you must sign up at your full retirement age (FRA). This is 67 if you were born in 1960 or later. Those born earlier have younger FRAs.

You can claim as early as age 62, but this is considered early claiming, and it reduces your checks by up to 30%. This reduction is generally permanent, and for some, it can cost them tens of thousands less in lifetime Social Security benefits. However, it could be a good move if you have no other means of covering your retirement expenses, or if you have a short life expectancy.

Most people would get a larger lifetime benefit by delaying Social Security, possibly until age 70. This is when you qualify for your largest benefit, worth 124% of the amount you'd qualify for at your FRA of 67. However, you'd have to cover your living expenses entirely on your own until then.

It's also fine to choose a claiming age in the middle if you prefer. You can explore your estimated benefit at every claiming age using the calculator tool in your my Social Security account. Use this along with your estimates of your life expectancy and financial situation to figure out which claiming age makes the most sense for you.

It's worth having some sort of game plan even if you're decades away from claiming. This can give you some idea of what to expect, so you know how much of your retirement expenses you'll need to cover on your own. But don't feel like your plan has to be set in stone. If your retirement plans change, it's fine to change when you claim Social Security too.

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