How to Get a Social Security Bonus

Social Security is an important part of the retirement income puzzle for many people. Even if retirement is still decades away, it’s important to understand what you can do to maximize those benefits once the time comes. Employing some simple strategies can help you enjoy a Social Security “bonus” when you’re ready to retire. If you’re curious about how to manage a Social Security bonus from start to finish, you may want to consider working with a financial advisor who serves your area.

What Is the Social Security Bonus?

The term “Social Security bonus” isn’t an official benefit but a way to describe how retirees can increase the amount they receive each month. Social Security allows you to boost your monthly payment by delaying when you start claiming benefits. While you can file as early as age 62, your full retirement age (FRA) is typically between 66 and 67, and waiting beyond that can significantly increase your check.

Each year you delay claiming past your FRA, your benefit grows by about 8% until age 70. These delayed retirement credits can add up, creating what many call a “bonus” because it raises your lifetime monthly benefit. The strategy works best for people who expect to live longer or who can afford to draw income from other sources while they wait. Understanding how these credits work is key to deciding whether delaying benefits can meaningfully improve your retirement income.

For many retirees, this “bonus” becomes a powerful planning tool, helping to create more financial stability later in life. It’s important, however, to weigh factors like health, income needs and spousal benefits before deciding to wait. A financial advisor can help you evaluate your options and choose the claiming age that best supports your long-term goals.

How to Get a Social Security Bonus

There are many ways to boost yourSocial Security benefits, creating a bonus of sorts. From increasing your earnings to being strategic with your benefits. Here are the four possible options to get more in benefits:

Option 1: Increase Your Earnings

Your earnings are the primary factor determining benefits. Specifically, your earnings are computed using your average indexed monthly earnings, which represent up to 35 years of your indexed earnings. The SSA uses this amount to calculate your primary insurance amount (PIA), which determines how much you receive in retirement benefits.

A simple way to increase your benefits is to increase your lifetime earnings. Making more money means the SSA has a higher starting point for indexing your earnings. This can result in a higher monthly benefit amount when you retire.

Increasing your annual income can be particularly helpful if there are gaps in your work history. The Social Security Administration looks at 35 years of earnings, but a “0” is entered for years in which you don’t report any earnings. So if you have a few years where you didn’t have any income because you were in school, for example, raising your earnings for other years could help to bring up your average.

Option 2: Wait Until Age 70 to Claim Social Security Benefits

Technically, you can begin drawing Social Security retirement benefits at age 62. The catch, however, is that this will reduce your benefit amount. You can avoid this scenario by waiting until your full retirement age to begin taking benefits. This is 66 or 67 for most people, depending on your birth year.

But there’s a third option: Delay benefits until age 70. In doing so, you can get a Social Security bonus in the form of a higher benefit amount. The bonus is worth up to 8% more each year you delay past full retirement age.

However, although waiting until age 70 to claim Social Security benefits can result in a larger check, you also must consider how realistic that option is. If you plan to keep working until age 70 or beyond, you may not need to tap into your 401(k), IRA or other assets to cover your expenses. But if you plan to retire at 65, you’ll have a five-year gap in which you’ll need to draw on your assets for income.

Option 3: Be Strategic With Spousal Benefits

Married couples can both collect Social Security retirement benefits, but it’s important to consider the timing to get the maximum benefit. While both spouses could take benefits as early as 62, it might pay off for the lower-earning spouse to wait to collect their benefit check.

If the second spouse waits until age 70 to claim benefits, that can result in a larger Social Security check. Whether this makes sense to do can depend on whether one or both of you are still working, your anticipated benefit amount and how much income you have apart from Social Security.

You’d also have to factor in life expectancies. For example, if you’re close to the same age and have similar earnings records, it might make sense for both of you to wait until age 70 to claim benefits if you expect to live longer. But if you’re in poor health and anticipate living fewer years in retirement, then you might be better off taking benefits earlier. Talking to your financial advisor can help you figure out which strategy might make the most sense for you.

Option 4: Make the Most of COLA Increases

Social Security recipients can get an increase in benefits without doing anything at all, thanks to cost of living adjustments (COLA). Issued by the government, these adjustments are designed to increase monthly Social Security benefit amounts to keep pace with inflation. For example, in 2025, benefits rose by 2.5% ¹   for more than 72.5 million  Americans  due to a cost of living adjustment.

This Social Security bonus isn’t a bonus, though; rather, it’s the Social Security Administration’s way of helping seniors counter rising consumer prices. COLA increases don’t always match the overall rate of inflation either. Still,  the increase can give you more income for your retirement budget, which can be helpful if you find yourself paying more for healthcare or medications as you get older.

How Income and Taxes Can Reduce Social Security Benefits

Social Security payments are not always received in full. If you earn income from work or other sources, it can affect how much you actually collect—and how much you keep after taxes. 

Here are common ways your income and taxes can cut into the benefits you receive:

• Earning before full retirement age: If you begin collecting benefits before reaching your full retirement age and continue to work, Social Security may withhold part of your monthly checks. This happens when your wages exceed an annual earnings limit. The amount withheld depends on how much over the limit you earn. Once you reach full retirement age, these reductions stop, and your benefit is recalculated to include what was withheld.
• Paying taxes on benefits: Social Security income may be taxed depending on your total income. This includes wages, retirement account withdrawals and other earnings. A portion of your benefits becomes taxable if your income crosses certain thresholds. This taxation is based on federal rules. In some states, additional taxes may apply.
• Drawing on multiple income sources. For retirees with other sources of income—such as part-time work, pensions or investment withdrawals—planning around Social Security is important. You might reduce your tax exposure by spreading out other income, delaying withdrawals or adjusting when you claim benefits.

Tips for Maximizing Retirement Income

Boosting your retirement income often comes down to making smart, proactive choices throughout your working years and into retirement. These tips can help you stretch your savings further and build a more secure financial future.

• Delay Claiming Social Security If You Can: Like we previously mentioned above, waiting to claim benefits past your full retirement age increases your monthly payment by roughly 8% per year until age 70. This can create a meaningful long-term boost, especially for retirees who expect to live longer or who have other income sources to rely on.
• Contribute Consistently to Tax-Advantaged Accounts: Regularly funding accounts like 401(k)s, IRAs or Roth IRAs allows your money to grow with the help of tax deferral or tax-free compounding. Even small, steady contributions can build significant wealth over time, especially if your employer offers matching contributions.
• Adjust Investments as You Near Retirement: Rebalancing your portfolio to reduce risk while still allowing for growth can help protect your nest egg. Many retirees shift gradually from stock-heavy portfolios toward more diversified allocations that emphasize stability and income.
• Create a Withdrawal Strategy That Minimizes Taxes: The order in which you withdraw from taxable, tax-deferred and tax-free accounts can affect how long your savings last. Coordinating withdrawals with required minimum distributions and your annual tax bracket can help you keep more of your retirement income.

Focusing on these strategies can help you enter retirement with greater confidence and financial flexibility. If you need help tailoring them to your personal goals, a financial advisor can offer guidance based on your income, savings and long-term plans.

Bottom Line

Maximizing your retirement income requires a mix of thoughtful planning, strategic timing and disciplined saving. Whether you delay Social Security, fine-tune your investment strategy or optimize how you withdraw your assets, each decision can have a meaningful effect on your long-term financial security. By taking a proactive approach and seeking guidance when needed, you can build a retirement plan that supports your lifestyle and provides lasting peace of mind.

Retirement Planning Tips

• Consider talking to a financial advisor about how to manage Social Security within your retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Social Security isn’t the only way to secure your retirement. You can also build wealth by saving consistently in your 401(k) plan and/or an Individual Retirement Account (IRA). If you’re already contributing to these accounts, you might consider opening a taxable brokerage account online as well. This way, you can save even more toward retirement without being restricted by annual contribution limits.

Photo credit: ©iStock.com/mphillips007, ©iStock.com/RichVintage, ©iStock.com/Bill Oxford