Make These 3 Social Security Moves Now for Larger Checks Later

Source The Motley Fool

If you manage to accumulate millions of dollars in time for retirement, then you may not end up caring all that much about what Social Security pays you. But the typical retiree does not land in that boat.

Many people enter retirement with modest savings and become heavily reliant on Social Security to help pay the bills. And if you expect that to be the case, then it's important to do what you can to score larger Social Security checks.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Social Security cards.

Image source: Getty Images.

The good news? There are active steps you can take immediately to set yourself up with more Social Security down the line. Here are three worth prioritizing.

1. Review your earnings record

The amount of money Social Security pays you in retirement will hinge on your personal wage history. That's why it's important to make sure that Social Security has accurate wage data on record for you. Underreported income could result in smaller benefits than what you should be entitled to.

To that end, create an account on the Social Security Administration's website so you can access your earnings statements. And check those statements every year. As a bonus, you'll not only see a wage summary, but also, an estimate of the Social Security benefit you can look forward to in retirement. That could help with your financial planning.

2. Join the gig economy

The more you manage to save for retirement, the less dependent on Social Security you'll be. So if you're struggling to fund an IRA or 401(k) plan based on your salary alone, the gig economy could come to your rescue. The extra money you earn from a side job could be your ticket to not only boosting your long-term savings, but having some breathing room with near-term bills.

But joining the gig economy could also lead to more Social Security later in life. That's because all earnings you pay taxes on count toward your future Social Security benefit, provided your total income doesn't exceed the wage cap, which is all the way at $176,100 this year.

So let's say you earn $80,000 a year at your full-time job, and you decide to supplement that with a side hustle that pays you $500 a month. If you report and pay taxes on that income -- which you have to do anyway -- that extra $6,000 a year goes onto your earnings record for Social Security purposes.

3. Start taking better care of your health

Working to improve your health won't give you a larger Social Security check on a monthly basis. But if you end up living a longer life because your health is strong, it could lead to a larger lifetime check from Social Security.

There are a number of ways you can improve your health, from pledging to get more sleep to being mindful of the foods you're eating. It's also a good thing to focus on your mental health. If you're frequently stressed, explore outlets like meditation or nature walks to take the edge off. And if your job causes you undue stress, consider a move to a less intense environment.

The better you take care of your health, the less you might end up having to spend on medical care both now and in retirement. And that, coupled with larger Social Security checks, could make your senior years more pleasant.

If you expect Social Security to be an important income source for you in retirement, then it's a good idea to do what you can to snag larger benefits. But don't wait to make these moves, because the sooner you do, the happier you might be with your benefits down the line.

The $22,924 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold Price Forecast: XAU/USD declines to near $4,450 as safe-haven demand eases Gold price (XAU/USD) declines to near $4,450 during the early Asian trading hours on Thursday. The precious metal loses momentum as traders book profits after a recent rally. Later on Thursday, the weekly US Initial Jobless Claims data will be released.
Author  FXStreet
Yesterday 01: 29
Gold price (XAU/USD) declines to near $4,450 during the early Asian trading hours on Thursday. The precious metal loses momentum as traders book profits after a recent rally. Later on Thursday, the weekly US Initial Jobless Claims data will be released.
placeholder
Bitcoin Price Slides Despite ‘Very Bullish’ MSCI Update: What Happened?MSCI's new rules limit passive investment demand for newly issued shares, impacting Bitcoin-linked companies' fundraising strategies.
Author  Mitrade
22 hours ago
MSCI's new rules limit passive investment demand for newly issued shares, impacting Bitcoin-linked companies' fundraising strategies.
placeholder
Gold selling pressure persists as traders lock in profits ahead of US NFP reportGold (XAU/USD) remains under some selling pressure for the second straight day and slides back closer to the overnight swing low during the Asian session on Thursday. The downtick lacks any fundamental catalyst and is likely to remain limited amid a supportive fundamental backdrop.
Author  FXStreet
21 hours ago
Gold (XAU/USD) remains under some selling pressure for the second straight day and slides back closer to the overnight swing low during the Asian session on Thursday. The downtick lacks any fundamental catalyst and is likely to remain limited amid a supportive fundamental backdrop.
placeholder
Silver Price Forecasts: XAG/USD extends its reversal below $76.00Silver (XAG/USD) is trading lower in an otherwise calm market session on Thursday.
Author  FXStreet
21 hours ago
Silver (XAG/USD) is trading lower in an otherwise calm market session on Thursday.
placeholder
Bitcoin briefly dips under $90,000 as profit-taking drags ETH, XRP and BNB lowerBitcoin briefly slipped below $90,000 after hitting $94,000 earlier in the week, with ETH falling to $3,120 as traders cited profit-taking, $150 million in long liquidations, and macro uncertainty including U.S. jobs data and tariff-related Supreme Court risks.
Author  Mitrade
20 hours ago
Bitcoin briefly slipped below $90,000 after hitting $94,000 earlier in the week, with ETH falling to $3,120 as traders cited profit-taking, $150 million in long liquidations, and macro uncertainty including U.S. jobs data and tariff-related Supreme Court risks.
goTop
quote