Social Security: Tips to Increase Your Retirement Benefits

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Millions of Americans retire and collect Social Security payments each year, but there are ways to increase those benefits.

Social Security was designed to cover only about 40% of your previous salary.

This means that you are supposed to have some sort of plan to supplement the rest of your income, like a nest egg.

While this is ideal and expected, many retirees end up living entirely on their Social Security payments.

This means you’ll want to increase your payments as much as possible, and there are several ways to do this.

Here are 4 ways to increase your Social Security payments

First, you could move to a state that does not subject your benefits to income tax.

Many people choose to move when they retire, and choosing such an option could save you money every year.

There are 12 states that currently tax Social Security benefits

  • Colorado
  • Connecticut
  • Kansas
  • Minnesota
  • Missouri
  • Montana
  • Nebraska
  • New Mexico
  • Rhode Island
  • Utah
  • Vermont
  • West Virginia

Will Michigan residents see a $1,000 increase in retirement benefits?

This means that moving out of one of these states if you currently live there could be ideal for saving money.

Then you can invest in a Roth account, as the withdrawal from the account will not be considered income combined with your social security income.

You could choose to work a few more years and increase your salary.

Delaying retirement beyond full retirement age will also increase your benefits until age 70.

At age 67, you can retire with 100% benefits, but for each year until age 70, you could see an 8% increase.

Finally, use all the social security benefits to which you are entitled.

This includes spousal benefits, divorce benefits, or survivor benefits.

It may be a situation where those benefits are worth more than yours.


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