Why Working Longer Won't Boost Your Social Security as Much as You Want

Core Insights - Social Security is a crucial income source for retirees, and maximizing benefits can significantly impact retirement quality [1] Group 1: Strategies to Increase Social Security Benefits - Workers can enhance their Social Security checks by boosting earnings, delaying benefits claims, or extending their careers [4] - Claiming benefits later can result in a monthly benefit increase of up to 75% if claimed at age 70 compared to age 62 [4] - Extending careers can help fill in gaps in work history, which is essential for calculating benefits [6][7] Group 2: Impact of Work History on Benefits Calculation - The Social Security Administration (SSA) adjusts earnings for inflation and averages the top 35 earning years to determine average indexed monthly earnings (AIME) [6] - If a worker has fewer than 35 years of earnings, additional work can replace zero-income years, potentially increasing benefits [7] - The formula for calculating benefits does not treat every dollar of earnings equally, indicating that higher earnings can lead to better benefits [8]