Additional Coverage:
- Majority of People Don’t Understand How to Maximize Social Security Benefits (Do You?) (financebuzz.com)
Are You Leaving Social Security Money on the Table? A New Survey Says Many Americans Are!
NATIONAL NEWS – If you’re counting on Social Security to be a cornerstone of your retirement, you’re not alone. But a recent survey suggests that while many of us are interested in getting the most out of our benefits, we might be a little hazy on how to actually do it. The stakes are real: the decisions you make could mean thousands of dollars difference in your monthly checks.
The 2025 Social Security Survey, conducted by The Nationwide Retirement Institute, teamed up with The Harris Poll to check the pulse of 1,812 U.S. adults, spanning from Gen Z all the way to our seasoned Boomers+. The poll ran from June 2 to July 10, 2025, and aimed to understand how well Americans grasp the ins and outs of maximizing their Social Security.
High Interest, Low Understanding: The Social Security Paradox
The findings painted a clear picture: folks are eager to learn! A whopping 80% of respondents expressed being “very” or “somewhat” interested in strategies to boost their Social Security benefits.
Dive a little deeper, and you’ll find 40% were “very interested,” and 41% were “somewhat interested.” Only a small fraction (11% “not very interested,” 9% “not at all interested”) seemed to shrug off the idea.
However, this widespread interest doesn’t always translate into a clear action plan. The survey highlights a significant knowledge gap when it comes to the nitty-gritty of optimizing filings, understanding earnings history, or timing benefit claims. This means there’s a big opportunity for better education to help Americans make more informed choices for their golden years.
Smart Moves to Maximize Your Social Security Payday
Ready to turn that awareness into actual dollars? Here are some key strategies to help you get the most out of your Social Security benefits:
- Work at Least 10 Years: This is your basic ticket to qualifying for retirement benefits, requiring 40 credits (you can earn up to four per year). But just qualifying isn’t maximizing!
More years worked, especially higher-earning ones, can significantly boost your benefit.
- Delay Claiming Benefits: Patience can literally pay off.
While you can start collecting at 62, this locks in a reduced benefit (up to 30% less). Waiting until your full retirement age (FRA), typically 67, and even further until age 70, can increase your benefit by roughly 8% per year.
This can also mean higher survivor benefits for your spouse.
- Aim for 35 High-Earning Years: Your benefit is calculated using your 35 highest-earning years.
If you have fewer, those missing years count as zeros, dragging down your average. Working longer to replace those low or zero-income years with higher earnings can make a substantial difference.
- Understand Retirement Earnings Limits: If you claim benefits before your FRA and continue working, your earnings might temporarily reduce your benefits. For 2025, the limit is $23,400 (with a $1 reduction for every $2 earned above it).
In the year you reach FRA, the limit is $62,160 (with a $1 reduction for every $3 earned above it). The good news?
These limits vanish once you hit FRA, and your benefits are recalculated to credit any withheld payments.
- Coordinate with Your Spouse: Married couples, this is a big one!
Strategic claiming decisions, especially for the higher earner, can significantly impact both spouses’ lifetime benefits and survivor benefits.
- Review Your Earnings Record Annually: Don’t just set it and forget it!
Check your Social Security Administration (SSA) earnings statement every year to ensure your income history is accurate. Correcting errors now can prevent incorrect benefit estimates later.
- Consider a Side Hustle: Beyond simply boosting your current income, a side hustle later in your career can replace lower-earning or zero-income years in your 35-year calculation, especially after you reach FRA and earnings limits no longer apply.
- Stay Informed on COLAs and Future Changes: Keep an eye on the broader Social Security landscape, including annual cost-of-living adjustments (COLAs) and any potential future funding reforms or legislation.
This awareness helps you adjust your retirement plans accordingly.
The Bottom Line
The message is clear: while Americans are keen to maximize their Social Security, many are still missing out on crucial strategies. By proactively understanding and applying these tips – like working more years, delaying benefits, coordinating with a spouse, and regularly reviewing your earnings – you can make smarter, more confident choices about your financial future. Stay informed, stay proactive, and ensure your Social Security benefits work as hard as you did to earn them!