If you’re nearing retirement, living with a disability, or struggling to keep up with everyday expenses, you may be eligible for support through Social Security—a federal program designed to provide financial assistance when it’s needed most. Whether you’re planning for yourself or helping a loved one navigate their options, understanding how Social Security works is a key step toward a more secure future.
In this Social Security guide, we’ll walk through the basics, benefit types, and share strategies to help you maximize your potential payout no matter what step of the way you’re on.
Understanding Social Security and Why It Matters
According to the Social Security Administration (SSA), Social Security benefits make up over one-third of income for the average retiree. That means for many Americans, this is more than just supplemental income—it’s a financial lifeline.
But not all benefits are created equal. If you’re expecting Social Security to be a major source of retirement income, it’s crucial to plan ahead and explore ways to optimize your future benefits. Fortunately, there are practical steps you can take right now to help ensure a more comfortable and confident retirement.
The Main Types of Social Security Benefits
- Retirement Benefits
These are the most commonly known benefits and are based on your lifetime earnings. The SSA calculates your benefit using your 35 highest-earning years, so the more you earn (and the longer you work), the higher your monthly benefit could be. You’ll need at least 10 years of work (40 credits) to qualify. You can start claiming retirement benefits as early as age 62, but you won’t receive your full monthly benefit unless you wait until full retirement age (66 to 67, depending on birth year). - Disability Benefits (SSDI)
If a serious health condition prevents you from working, Social Security Disability Insurance may provide financial assistance. To qualify, you must have enough work credits and a disability expected to last at least one year or result in death. These benefits are especially vital for individuals who face long-term health challenges and have no ability to earn income. - Survivor Benefits
Social Security also helps support surviving family members of deceased workers. Eligible recipients might include a spouse, dependent children (usually under 18 or 19 if still in school), and sometimes dependent parents. Survivor benefits typically range from 70% to 100% of the deceased person’s benefits, depending on various factors like the survivor’s age and income.
Smart Strategies to Help Boost Your Benefits
Track Your Earnings History Regularly
Your benefits are based on your lifetime earnings, so it pays to review your Social Security statement annually. If you spot errors or years with low income, consider working a bit longer or earning more in future years to replace those lower-earning periods. This can make a noticeable difference in your benefit calculation.
Consider Delaying Your Payments
If you claim your benefits before full retirement age, your monthly payments will be reduced. But if you wait—up to age 70—you can earn delayed retirement credits, increasing your monthly benefit by up to 8% per year beyond your full retirement age. If you’ve already started receiving payments and want to pause them to accrue these credits, you can do so after reaching FRA but before turning 70.
Look Into Survivor Benefits if Applicable
If you’ve lost a spouse or a parent who paid into Social Security, you or your children may qualify for survivor benefits. Even if you’re still working, it’s worth checking eligibility. However, your income could impact the amount you receive, so be sure to factor that into your decision.
Final Thoughts: Planning Now Pays Off Later
Planning for Social Security isn’t just about knowing when to apply—it’s about understanding the full picture and using strategies that can help you or your loved ones get the most out of this important benefit.
Whether you’re looking to stretch your retirement income, support a family member with a disability, or simply prepare for what’s ahead, taking time now to review your options can make a big difference down the line.