First things first, let’s get on the same page about how Social Security works. You earn credits based on your work history, and the number of credits needed to qualify for benefits is typically 40, which equates to about 10 years of work. The amount you receive each month depends on your highest 35 years of earnings. If you had a few lean years or took time off to raise kids, don’t worry — your benefits will still reflect your top-earning years.

Know your full retirement age

Your full retirement age (FRA) is the age at which you can receive your full Social Security benefits without any reductions. For baby boomers, FRA varies based on your birth year. For example, if you were born in 1955, your FRA is 66 years and 2 months. If you were born in 1960 or later, your FRA is 67. Understanding your FRA is essential because claiming benefits before this age results in a permanent reduction of your monthly payment.

Delay your benefits for increased payouts

One of the most effective strategies to maximize your Social Security benefits is to delay claiming until after your FRA. For each year you wait past your FRA, your benefits increase by approximately 8% until you reach age 70. This can lead to a significantly higher monthly payout for the rest of your life. If you can afford to wait, it might be worth considering — after all, those extra dollars can make a big difference in your retirement lifestyle.

Consider spousal benefits

If you’re married, don’t overlook the potential benefits available to you as a spouse. Spousal benefits allow you to receive up to 50% of your spouse’s benefit if it’s higher than your own. You can choose to take your own benefit or a spousal benefit, whichever is higher. If your spouse has a lower earning history, you may want to claim spousal benefits while allowing your own benefit to grow until you reach the maximum amount.

Explore survivor benefits

If you’re a widow or widower, survivor benefits are another key consideration. You can claim benefits based on your deceased spouse’s work record, which could be higher than your own. Typically, you can start receiving survivor benefits at age 60 (or 50 if you’re disabled). The strategy here is to weigh the pros and cons of claiming early versus waiting to maximize your survivor benefits.

Utilize the “file and suspend” strategy

For couples, the “file and suspend” strategy could be beneficial, although recent changes in the law have made it less accessible. If one spouse files for benefits and immediately suspends them, the other spouse can claim spousal benefits while the suspended benefits continue to grow. This strategy allows for maximizing overall benefits, but it requires careful planning and understanding of current regulations.

Coordinate with your partner

Speaking of couples, coordinating your Social Security strategies with your partner can lead to increased benefits for both of you. Discuss your work histories, when each of you plans to retire and how that affects your benefits. A well-thought-out plan that takes both partners’ benefits into account can maximize your combined payouts.

Understand tax implications

It’s important to note that Social Security benefits may be subject to federal income tax, especially if you have other sources of income. As a rule of thumb, if your combined income exceeds certain thresholds, you may be required to pay taxes on your benefits. Understanding how this works can help you plan accordingly. For example, if you’re close to a tax threshold, consider whether it makes sense to delay taking your benefits or to adjust other income sources to minimize tax exposure.

Stay informed about changes

Social Security is constantly evolving, and policies can change. Staying informed about potential changes to the program can help you make better decisions. Join local seminars, read articles and consider consulting a financial advisor who specializes in retirement planning. Knowledge is power, especially when it comes to your financial future.

Evaluate your overall retirement strategy

Finally, remember that Social Security is just one piece of your retirement puzzle. Take a holistic approach to your retirement planning by evaluating other sources of income, such as pensions, savings accounts and investment income. Understand how these sources fit together with your Social Security benefits to create a comprehensive retirement strategy.

In conclusion, maximizing your Social Security benefits is all about strategic planning and informed decision making. By understanding the ins and outs of the program, considering spousal and survivor benefits, and planning your claiming strategy wisely, you can set yourself up for a financially secure retirement. So, take the time to review your options, consult with trusted professionals and make the most of what Social Security has to offer. Your future self will thank you!

Lyle Boss, The REAL BOSS Financial, endorsed by Glenn Beck as the premier retirement advisor for Utah and the Mountain West states. Boss Financial, 955 Chambers St., Suite 250, Ogden, UT 84403. Telephone: 801-475-9400.