Unveiling Strategies to Maximize Your Social Security Benefit

Why Is It So Hard to Snag the Maximum Social Security Benefit?

There's a reason that benefit is so out of reach. Seniors are often warned not to retire on Social Security alone, since those benefits will only replace about 40% of the average worker's wages. But some lucky recipients this year may be in line for a monthly benefit of $4,873. That might be roughly the equivalent of what you're making now with a full-time job.

It's a matter of wages

There are three factors that go into calculating your monthly Social Security benefit:

• The number of years you work
• The wages you earn during your career
• The age at which you claim benefits

Social Security benefits are based on your 35 most profitable years of earnings. So it's good to aim for at least that many years with an income on record to set yourself up with more money from the program in retirement.

Meanwhile, your Social Security filing age will determine how much of a benefit you get. If you sign up at full retirement age (FRA) on the nose, you'll get the exact monthly payday you're eligible for based on your personal wage history. FRA is either 66, 67, or somewhere in the middle.

Don't spin your wheels -- focus on savings instead

If you know your wages aren't close enough to score you Social Security's maximum monthly benefit, don't waste your time or energy chasing it. Instead, focus on managing your expenses wisely so you're able to carve out money for retirement savings year after year.

There's absolutely nothing wrong with taking steps to boost your monthly Social Security benefit, like delaying your filing for a higher payday. But don't stress yourself out trying to snag the program's maximum monthly benefit. Instead, focus on building a solid nest egg to set yourself up for the comfortable retirement you deserve.