Few factors have a greater impact on most seniors’ retirement finances than the size of their Social Security check. According to the most recent edition of Gallup’s annual survey on the government program, six in ten retirees consider Social Security to be a major source of income for their household.
While Social Security provides an annual cost-of-living adjustment, or COLA, to help benefits keep up with inflation, many seniors have felt the pinch of rising housing and healthcare costs.
The Senior Citizens League estimates that the average retiree who began receiving Social Security in 2010 has lost 20% of their purchasing power since then.
Many seniors will be relieved to know that their Social Security benefits are not always guaranteed. There are ways to increase your benefits in addition to the annual COLA, and it may be worthwhile to look into several options. Here are three ways to increase your monthly paycheck.
1. Keep working or go back to work in your 60s
When the Social Security Administration calculates your monthly benefit, it considers your entire earnings history. Earnings from earlier in your career are adjusted for inflation, but they are tied to an index beginning with the year you turn 60. They won’t keep rising with inflation after that.
In contrast, many workers in their 60s see wage increases that are at least in line with inflation. That means that working in your 60s is likely to increase your average earnings when calculating your Social Security benefit.
If you continue to work in your 60s while collecting Social Security, the Social Security Administration will recalculate your benefit at the beginning of each year after receiving your earnings information for the previous year.
It will increase your benefit if your earnings from the previous year exceeded your average earnings from your career, as well as make up any payments missed earlier in the year.
There is one potential disadvantage to working in your 60s while receiving Social Security. If you have not reached the full retirement age, your benefits will be subject to the retirement earnings test.
If your earnings exceed a certain level, the Social Security Administration may withhold a portion of your benefits. For 2025, the limit is $23,400. For every $2 earned above that limit, it will deduct $1 from annual benefits. (If you reach full retirement age this year, your limit increases to $62,160.
It will deduct $1 for every $3 earned above the limit. The Social Security Administration will adjust your benefit at full retirement age to compensate for the withheld benefits in your early 60s.
2. Hit the undo button
Social Security provides a couple of options for compensating for claiming benefits earlier than necessary in retirement. This will allow you to delay benefits, resulting in a larger Social Security check.
Your first option is to withdraw your application. This option is available to anyone within 12 months of their initial application. When you withdraw your application, it will be as if you never made the decision to claim in the first place.
However, you will be required to repay any Social Security benefits you have previously received, including any Medicare premiums paid through your retirement benefits if applicable.
That may not be possible for many seniors, either due to time constraints or the need to repay benefits. Fortunately, you may be able to suspend your benefits without having to repay anything.
You can suspend your benefits at any time after reaching full retirement age, up to the age of 70. Suspending benefits will temporarily halt your benefit payments. Instead, you will receive a credit for each month your benefits are suspended equal to two-thirds of the amount you were previously receiving.
That may not seem like much, but someone with a full retirement age of 67 (born in 1960 or later) could increase their benefit by 24% by going three years without a monthly check.
Many people may find the temporary pain worthwhile, especially if their retirement investments performed well early on. You’ll most likely have more money to spend on things you need or want in your 70s, 80s, and beyond.