3 Lesser-Known Ways to Boost Your Social Security Benefits With Next-to-No Effort

Source The Motley Fool

Social Security benefits are a lifeline for millions of retirees, so it can be a good idea to maximize them the best you can. The average retiree collects around $1,925 per month in benefits as of November 2024, but a few simple strategies could help boost your payments by hundreds of dollars per month.

Perhaps the easiest way to increase your benefit amount is to delay claiming. Every month you wait past age 62 will earn you larger checks, and those payments will max out at age 70.

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

But delaying benefits isn't the only way to increase your monthly income, and there are a few lesser-known strategies that could help you earn more than you might think.

Smiling person sitting at a desk with a laptop while holding a mug.

Image source: Getty Images.

1. Apply for spousal or divorce benefits

If you're currently married and your spouse is entitled to either retirement or disability Social Security, you could collect up to 50% of their full benefit amount in spousal benefits.

Divorced spouses can also qualify for these benefits, as long as you're not currently married and your previous marriage lasted for at least 10 years. If you've been divorced for fewer than two years, you'll also need to wait to file until your ex-spouse begins claiming.

You can collect spousal or divorce benefits whether or not you qualify for retirement benefits based on your own work record. But if you are receiving retirement benefits, you'll only collect the higher of the two amounts -- not both.

So, for instance, say you're eligible for $800 per month in retirement benefits but can receive $1,000 per month in spousal benefits. In this case, the Social Security Administration will pay out your $800 per month first, then you'll receive an additional $200 per month in spousal benefits so that your total payment is $1,000 per month.

2. Continue working after taking Social Security

Working while receiving Social Security can not only increase your overall income, but it could also boost your monthly benefit.

If you're under your full retirement age, your benefit could be reduced depending on how much you're earning from your job. But these reductions aren't permanent, and you'll begin receiving adjusted payments at your full retirement age to account for any money that was withheld.

Income Limits Benefit Reductions
If you're under full retirement age in 2025 $23,400 per year $1 reduction for every $2 over the limit
If you'll reach your full retirement age in 2025 $62,160 per year $1 reduction for every $3 over the limit

Source: Social Security Administration. Table by author.

Exactly how much more you'll receive once your payments are adjusted will depend on how much you had withheld due to your earnings. The higher your income, the larger the reductions will be -- which will result in larger adjusted payments.

This strategy will mostly benefit those who were already planning on working while taking Social Security anyway. But if you're on the fence about whether to go back to work or not, the larger checks you might receive could help with that decision.

3. Contribute to a Roth IRA or Roth 401(k)

Saving in a Roth account may not necessarily increase your benefit amount, but it can lower your tax bill -- helping you keep more of your money.

Social Security can be subject to both state and federal taxes. A whopping 41 states don't tax benefits, though, so you may already be off the hook in that regard. But federal taxes depend on a figure called your combined income, which includes your adjusted gross income (including retirement account withdrawals), nontaxable interest, and half of your annual benefit amount.

Percentage of Your Benefit Subject to Federal Taxes Combined Income for Individuals Combined Income for Married Couples Filing Jointly
0% Under $25,000 per year Under $32,000 per year
Up to 50% $25,000 to $34,000 per year $32,000 to $44,000 per year
up to 85% More than $34,000 per year More than $44,000 per year

Source: Social Security Administration. Table by author.

However, there's a caveat here: Roth account contributions don't count toward your combined income. If a good chunk of your savings are in a Roth IRA or Roth 401(k), you could reduce your combined income enough to fall into a lower tax bracket -- or even avoid federal taxes on your benefits altogether.

If you're going to be relying on Social Security in retirement, it pays to make the most of it. With the right strategy, you could boost your monthly payments and build a more financially secure future.

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. For example: 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. Simply click here to discover how 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
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Gold price snaps selling off after fresh Trump comments on tariffsGold price (XAU/USD) is turning positive, recovering above the $$3,300 level at the time of writing on Thursday after two days of firm selling pressure since it topped at $3,500 on Tuesday.
Author  FXStreet
Apr 24, Thu
Gold price (XAU/USD) is turning positive, recovering above the $$3,300 level at the time of writing on Thursday after two days of firm selling pressure since it topped at $3,500 on Tuesday.
placeholder
Gold price surges past $3,300 on trade jitters, yield slump reviving haven demandGold price snapped two days of losses on Thursday and rose $50, or more than 1.50%, amid renewed concerns about the US-China trade war.
Author  FXStreet
Yesterday 03: 51
Gold price snapped two days of losses on Thursday and rose $50, or more than 1.50%, amid renewed concerns about the US-China trade war.
placeholder
Gold price consolidates in a range; bulls have the upper hand while above $3,300Gold price (XAU/USD) struggles to capitalize on the previous day's move higher and oscillates in a narrow trading band during the Asian session on Friday amid mixed fundamental cues.
Author  FXStreet
Yesterday 03: 53
Gold price (XAU/USD) struggles to capitalize on the previous day's move higher and oscillates in a narrow trading band during the Asian session on Friday amid mixed fundamental cues.
placeholder
Gold edges down amid clash over status of US-China trade talksGold price is on the back foot on Friday, almost erasing all of Thursday’s gains, and looks set to close off this week in the red.
Author  FXStreet
20 hours ago
Gold price is on the back foot on Friday, almost erasing all of Thursday’s gains, and looks set to close off this week in the red.
goTop
quote