Social Security Maximization: How to Get the Most From Your Benefits

retirement 2026-02-27 · 5 min read social security retirement benefits claiming strategy retirement planning spousal benefits

Social Security is one of the largest financial assets most Americans have, yet the claiming decision — which can permanently affect benefit size — is often made without a full understanding of the trade-offs. The difference between an optimal and suboptimal claiming strategy can exceed $100,000 in lifetime benefits for some couples.

This guide explains how Social Security benefits work and how to maximize what you receive.

How Social Security Benefits Are Calculated

Your benefit is based on your 35 highest-earning years, indexed for inflation. The Social Security Administration calculates your Average Indexed Monthly Earnings (AIME) and applies a formula that replaces a higher percentage of lower earnings than higher earnings (it's progressively structured to benefit lower-income workers).

Your "full retirement age" (FRA) determines the baseline benefit you're entitled to:

Born 1943–1954: FRA is 66
Born 1955–1959: FRA gradually increases
Born 1960 or later: FRA is 67

Check your actual benefit estimate: Create an account at ssa.gov/myaccount. You'll see your projected benefit at 62, FRA, and 70 based on your actual earnings record. This number is essential — all strategy decisions start here.

The Core Trade-Off: Claiming Age

You can claim Social Security as early as 62 or as late as 70. The age you claim permanently determines your monthly benefit:

Claim at 62: Benefit reduced by ~25–30% from FRA amount (depending on your FRA)
Claim at FRA (67): 100% of your calculated benefit
Claim at 70: Benefit increased by 8% per year past FRA = 124% of FRA benefit

The question is: which timing maximizes your total lifetime benefits?

Break-even analysis: Delaying from 62 to 67 means 5 years of no checks, followed by higher monthly payments. The break-even age — where the higher monthly payments cumulatively make up for the years of no checks — is typically around 78–80. If you live past your break-even age, delaying was the right call.

For the average person reaching 65 today, the Social Security Administration's actuarial life expectancy is about 82–85. Most people who claim early at 62 and live into their 80s would have received more total money by waiting.

When Early Claiming Makes Sense

Delaying is not always right. Consider claiming early if:

You're in poor health and have reason to believe your life expectancy is shorter than average
You need the income — you've stopped working and cannot sustain living expenses otherwise
You have no other assets to draw from and the alternative is debt
You're single with no dependents — the break-even calculation is simpler and earlier claiming may make sense for health or lifestyle reasons

Don't claim early simply because you're worried about Social Security's solvency or because you feel entitled to money you paid in. Solvency concerns are speculative; the break-even math is concrete.

Spousal Benefits: A Critical Variable

Married couples have additional options that can significantly increase lifetime household benefits.

Spousal benefit: A spouse who earned less (or not at all) can claim up to 50% of the higher earner's FRA benefit. This is in addition to their own earned benefit — they receive whichever is higher, not both combined.

Key optimization for couples with income disparity: The higher earner's benefit is the key asset to protect. The higher earner should delay as long as possible (ideally to 70), while the lower earner may claim earlier. Why: when the higher earner dies, the surviving spouse steps up to receive 100% of the deceased spouse's benefit (the survivor benefit). The higher the deceased earner's benefit, the more income the surviving spouse receives for the rest of their life.

This strategy — lower earner claims early, higher earner delays to 70 — often produces the best outcome for couples, especially those with meaningful age or earnings differences.

Divorced spouse benefits: If you were married for at least 10 years and are currently unmarried, you can claim spousal benefits on your ex-spouse's record (up to 50% of their FRA benefit) without affecting what your ex receives. This doesn't require coordination with your ex.

Widow/widower benefits: Surviving spouses can claim survivor benefits as early as 60 (50 if disabled). Survivor benefits are based on 100% of what the deceased spouse received (or would have received at FRA, if they claimed early). Survivor benefits and your own retirement benefit are claimed separately — you can claim survivor benefits early while your own retirement benefit continues growing, then switch at 70.

Earnings Test: Working While Claiming Before FRA

If you claim Social Security before your FRA while still working, your benefits may be temporarily reduced:

Under FRA: Benefits reduced by $1 for every $2 earned above $22,320 (2024 threshold)
Year you reach FRA: Benefits reduced by $1 for every $3 earned above $59,520 for months before your FRA birthday
At FRA and beyond: No earnings test — you can earn unlimited income without benefit reduction

The benefits withheld for early claiming + working are not lost permanently — they're credited back to you as a higher monthly benefit starting at your FRA. But the complexity and temporary income reduction is another reason some people prefer to simply delay claiming rather than navigating the earnings test.

Taxes on Social Security Benefits

Up to 85% of Social Security benefits are subject to federal income tax, depending on your "combined income" (adjusted gross income + nontaxable interest + half of Social Security benefits):

Combined income under $25,000 (single) or $32,000 (married): 0% of benefits taxable
Combined income $25,000–$34,000 (single) or $32,000–$44,000 (married): Up to 50% of benefits taxable
Combined income above $34,000 (single) or $44,000 (married): Up to 85% of benefits taxable

In retirement, managing your taxable income — through Roth conversions, controlling IRA withdrawals, timing capital gains — can keep your combined income in a lower tier and reduce taxes on Social Security. This is an area where a financial advisor or tax professional can add real value.

Practical Steps for Your Claiming Decision

Get your SSA estimate: Log into ssa.gov/myaccount and look at your projected benefits at 62, 67, and 70.
Run the break-even calculation: At your life expectancy (or a range of scenarios), which claiming age produces the most total benefits?
Coordinate with your spouse: If married, model the combined household strategy, weighting survivor benefit optimization heavily.
Account for taxes: Understand how claiming age affects your taxable income and overall tax situation in retirement.
Consider a Social Security calculator: Tools like Open Social Security (open-source, free) or the SSA's own calculators model different claiming scenarios for you.
Decide 12–18 months before you plan to claim: Applications can be filed up to 4 months before you want benefits to start. Avoid last-minute decisions.

For most people with average or better health and a spouse who will outlive them, delaying to 70 (or close to it) is the mathematically superior strategy. The monthly benefit difference between claiming at 62 versus 70 is roughly 75–80% higher at 70 — and that difference is permanent and inflation-adjusted for the rest of your life.