You Could Miss Out on More Social Security If You Don't Make These Moves

Many seniors end up relying heavily on Social Security once they retire and stop collecting a paycheck. If you expect to be in the same boat, it's in your best interest to try to score as high a monthly benefit from the program as you can. But you might miss out on that higher benefit if you don't make these key steps.

1. Learn your full retirement age

Your monthly Social Security benefit will be calculated based on your 35 highest-paid years in the labor force. But you won't be entitled to that benefit in full until full retirement age (FRA) arrives.

Image source: Getty Images.

Here's what FRA looks like, based on your year of birth:

Data source: Social Security Administration. Chart by author.

To be clear, you're allowed to sign up for Social Security as soon as you turn 62. So it's more than possible to start getting your benefits well ahead of FRA.

But for each month you claim them before FRA arrives, they'll be reduced. If you want to avoid that, you'll need to wait until at least FRA to sign up -- or even beyond.

You can actually score a higher monthly Social Security benefit by delaying your filing past FRA. However, this incentive runs out at age 70, so there's no sense in delaying beyond that point.

2. Review your annual earnings statements

Each year, the Social Security Administration (SSA) issues workers an earnings statement that summarizes their wages for the year. It also includes an estimate of Social Security benefits, which can be very helpful, even well ahead of retirement.

Some people never pay attention to those earnings statements. And to be fair, if you're not 60 or older, yours won't come automatically in the mail. Instead, you'll need to create an account on SSA.gov to access them.

But if you don't review your annual earnings statements, you might end up with income that's underreported. And that could result in a lower Social Security benefit.

Let's say there's a year when your income is reported as $65,000 when you really earned $85,000. That has the potential to result in a lower Social Security benefit down the line. If you check your earnings statement, you'll have an opportunity to correct that mistake so your benefits don't take a hit.

3. Read up on spousal benefits

When you're claiming Social Security based on your own earnings record, you'll be rewarded in the form of a higher monthly benefit by delaying your filing past FRA. But that perk doesn't apply to spousal benefits.

If you're claiming spousal benefits, there's no financial incentive to delay your filing past FRA because those benefits can't grow. If you're eligible for your full spousal benefit at an FRA of 67 but you wait until 69, all you'll do is deny yourself a lot of income you could've had access to.

It's natural to want as much money as possible out of Social Security. Take the time to make these key moves so you can snag the largest payday you can.