1 Social Security Trick That Could Get You Larger Benefits

A lot of people end up relying heavily on Social Security for income once they retire. And if you're in the same boat, you might appreciate a boost to your monthly checks.

Of course, one nice thing about Social Security is that benefits are eligible for a cost-of-living adjustment (COLA) each year. But those boosts don't tend to go very far, especially since they typically end up trailing inflation instead of keeping up with it.

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If you're collecting Social Security and want to see your benefits grow beyond what a COLA can do, you may be in luck. There's one trick you can employ that could leave you with larger monthly checks for life.

Go back to work to boost your earnings record

Your monthly Social Security benefits in retirement are based on two main factors -- your personal earnings history and your filing age. And for the former, the Social Security Administration (SSA) specifically factors your 35 highest-paid years of wages into its benefits formula.

What this means is that if you don't have a full 35 years of income under your belt, you'll have a $0 factored in for each year you don't have a record of earning wages. Similarly, if you have a few years of very low earnings, that could result in smaller monthly benefits.

If you're unhappy with your current Social Security paycheck, one option you have is to go back to work. Earning wages for a year, for example, could mean replacing a year of $0 income in your benefits formula with actual earnings. Or, if you're able to earn a decent amount of money now, you could replace a year of lower earnings with a year of higher income.

The good news is that the SSA does allow beneficiaries to work. But if you haven't yet reached full retirement age, you'll need to be careful with this strategy, since earning too much money could cause some of your benefits to be withheld.

However, if you're already at or beyond full retirement age, you can earn any amount of money without negatively affecting your benefits. Quite the contrary -- in that case, earning money could make it possible for the SSA to recalculate your benefits and start paying you more money each month.

A solution worth considering

Not only could going back to work result in larger Social Security benefits, but it could also do great things for your general finances and mental health. If you're able to earn even a modest wage, it can serve as supplemental income, making it easier to keep up with your costs.

Plus, for many retirees, a job can offer some structure and serve as a social outlet. So it pays to consider a return to work in some capacity, especially if you're less than thrilled with your current monthly Social Security check.

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