Social security can be of immense benefit to all of us; but we are hardly aware of that. This is mainly because, social security is a complex process and the rules that guide it are not easily understandable to common man! Thus, many of us don’t know how we can maximize the benefits of social security.
There are 4 main things which one should know in order to maximize your social security benefits:
1. You may get benefits even if you had not paid anything: It should be noted here that even if you have never paid the social security taxes, you may be able to receive the retirement benefits under Social Security. In order to get the benefits, you will have to be at least 62 years old. Apart from this, your husband or wife must be eligible for disability or retirement benefits under social security to apply.
2. Claim the benefits late and let it grow: If you presently don’t need the social security benefits, then you can delay claiming them. You will be surprised to find that the additional income down the line will be significant. It has also been found that the increase can amount to around 8% more for each year that you delay your retirement.
3. You may choose for payment equal to half of what your spouse receives: Your spouse may receive higher benefits if he or she earned more in the course of his/her life. When you apply for social security benefits, you can thus choose the benefit calculated on your salary, or on one-half of your spouse's higher amount. Choosing the second option won’t affect your spouse's benefit. Thus, it will provide both of you with a much higher benefit.
4. Start collecting your benefits before your spouse retires: Once your spouse attains the retirement age, i.e. 66-67 years, he or she can file for a benefit but suspend it. As your spouse carries on with his job, his benefits will grow. In the meanwhile, you can start claiming your social security benefits.
Last but not the least; learn about social security benefits in order to educate yourself about it. This will help you avoid mistakes and increase your benefits. Check your account on the Social Security Administration (SSA) regularly to see if the administration has recorded your work and earnings history correctly. Your retirement benefit is based in part on this work and earning history.