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.

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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.

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The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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