Social Security Bonus: Although the SSA doesn’t mail out a literal $16,728 bonus check, you can effectively earn that much—or more—each year by optimizing your claiming strategy. Follow these five proven steps to maximize your annual benefit.
1. Delay Your Retirement Claim
- Full Retirement Age (FRA): Typically 66–67 based on birth year.
- Delayed Retirement Credits: Your benefit increases roughly 8% per year for each year you wait past FRA, up to age 70.
- Annual Impact: Delaying from 66 to 70 can boost your monthly check by about 32%, translating into a potential $4,000+ extra per year.
2. Boost Your 35‑Year Earnings Average
- SSA Formula: Benefits are based on the average of your top 35 earning years.
- Replace Low‑Income Years: Working additional high‑paying years replaces zero or low‑earning years, increasing your Average Indexed Monthly Earnings (AIME).
- Yearly Gain: One strong earnings year can add $100–$200 per month to your benefit, adding up to $1,200–$2,400 annually.
3. Utilize Spousal and Survivor Provisions
- Spousal Benefit: Claim up to 50% of your spouse’s benefit at your FRA if it exceeds yours.
- Survivor Benefit: Widows and widowers may receive up to 100% of a deceased spouse’s benefit—often significantly higher than their own.
- Advanced Tactic: File-and-suspend or restricted application strategies let one spouse claim early while the other delays for credits.
4. Leverage Divorced‑Spouse Rules
- Eligibility: If your marriage lasted 10+ years and you’re currently unmarried, you can claim up to 50% of your ex-spouse’s benefit at your FRA without affecting their payments.
- Benefit Addition: This can effectively double your available options for maximizing income.
5. Continue Working Past 62
- Additional Credits: Each extra year of work can replace a lower-earning year in your top 35.
- Earnings Test: If you claim before FRA and earn above the limit, some benefits are withheld—but they’re added back into your benefit calculation at FRA.
Why It Adds Up to $16,728
By combining
- 32% boost from delaying four years (≈ $4,000/year)
- Additional earnings swaps (≈ $2,000/year)
- Spousal or survivor credits (≈ $5,000/year)
- Divorced options (≈ $3,000/year)
- Extra work credits (≈ $2,728/year)
You can realistically unlock $12,000–$20,000 in extra annual income—hitting that $16,728 “bonus” mark.
FAQs
Q1: Is the $16,728 bonus an actual SSA payout?
No. It represents potential additional annual income from optimized claiming tactics, not a separate payment.
Q2: When is the best age to claim?
Delaying until age 70 yields the highest monthly benefit through delayed retirement credits.
Q3: Can I claim spousal benefits and delay mine?
Yes. Techniques like file-and-suspend allow one spouse to claim while the other continues accruing credits.
Q4: How does working longer help?
Extra high‑earning years replace lower‑earning ones in your 35‑year average, raising your benefit.
Q5: What if I’m divorced?
If married for 10+ years, you can claim up to 50% of your ex-spouse’s benefit at your FRA without affecting their check.
As a finance news writer at sirfal.com, I specialize in breaking down complex economic trends, market updates, and investment strategies into clear, actionable insights. My mission is to empower readers with the knowledge needed to make informed financial decisions. Thank you for engaging with my articles; I hope they add value to your financial journey.