Want Substantially Larger Social Security Checks in Retirement? Here's What You Need to Do

For many retired Americans, Social Security serves as a key income source. Without those monthly benefits, many retirees would not have a way to cover their expenses.

That doesn't mean those benefits are overwhelmingly generous, though. The typical retired worker on Social Security today collects a little more than $2,000 a month, or roughly $24,000 per year.

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Now if that Social Security income is coming on top of sizable distributions from an IRA or 401(k), $2,000 a month doesn't sound so bad. But many seniors don't have retirement accounts to tap. So if you expect Social Security to constitute the bulk of your income in retirement, it's important to do what you can to boost those monthly checks.

Thankfully, there are some fairly easy steps you can take to set yourself up with larger monthly benefits. Here are three to incorporate into your strategy.

1. Make sure you have a minimum 35-year work history

To qualify for Social Security in retirement, you need to accumulate 40 work credits in your lifetime, at a maximum of four credits per year. This means that you can become eligible for retirement benefits after working for 10 years in enough of a capacity to get your 40 credits.

But working only 10 years probably won't give you a very large Social Security benefit. Social Security takes your 35 highest-paid years of earnings into account in your benefits formula. This means that if you don't work a full 35 years, you'll have a $0 factored into that equation for every year you're without an income.

If you want larger Social Security checks in retirement, aim to work for 35 years at a minimum. You don't necessarily need to work in a salaried position for your wages to count, though.

Freelance income counts toward Social Security because you're required to pay taxes on it. So if you're nearing what should be the end of your career and you only have, say, 32 years of work under your belt, you don't necessarily have to commit to staying in a salaried role for three more years. You could join the gig economy instead doing something more rewarding or enjoyable.

2. Keep boosting your income

Higher earnings on your part could lead to larger Social Security checks in retirement. So if you want to lock in more generous benefits, do what you can to grow your wages. Part of that could mean working a bit longer later in life to replace some years of lower earnings.

Let's say you've worked for 35 years, but for much of that time, you were in a low-wage job. Income earned earlier on in your career is indexed for inflation when calculating your Social Security benefits. But if you earned a $30,000 salary from 1990-2010, even when adjusting those wages for inflation, you may be looking at benefits that aren't as large as they could be.

However, let's say you're now on your 35th year of work and are earning $110,000 a year. If you're able to do that for a few more years, you can replace some $30,000 years with your new salary, leading to larger monthly Social Security checks.

3. Sit tight until age 70

You're entitled to your Social Security benefits without a reduction at full retirement age. If you were born in 1960 or later, that age is 67.

However, for each year you delay your Social Security claim, up until age 70, your benefits grow 8%. And that boost is one you get to enjoy for the rest of your life.

If you're earning more money now than you were earlier on in your career, working longer could make sense for you. And if you're still working, it may be more than feasible to wait on Social Security.

The more money Social Security pays you each month, the easier it might be to enjoy retirement to the fullest and have less financial stress. These moves could lead to larger benefits, so it pays to set yourself up with that higher income -- and the peace of mind that comes with it.

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