Increase $450 in Social Security checks – There’s 1 way retirees can get it and it’s not through COLA:For millions of beneficiaries, an annual rise from the cost-of-living adjustment (COLA) is fantastic. However, many Americans may not be aware of another means to increase Social Security benefits to $461 each month.
Through cost-of-living adjustments (COLAs), Social Security retirement benefits are essentially always increased, albeit not by much. The COLA for 2025 is probably going to be much smaller than it was last year, when the average benefit climbed by $59 per month.
Thankfully, seniors have additional choices besides COLAs to boost their Social Security income after retirement. However, there is a caveat to this option that may raise your monthly benefit by as much as $461.
What you should know about the $461 Social Security check increase option
It’s possible that you’ve heard that the amount of your Social Security benefits is determined by your age at enrollment. You’ve reached full retirement age (FRA) when you can start collecting your full Social Security payment.
That age is between 66 and 67 for today’s workforce. But at that age, you are not required to make a claim. Social Security benefits can be claimed as early as age 62, albeit the payouts will be less. You lose 5/9 of 1% monthly for the first 36 months following your early claim.
You forfeit an additional 5/12 of 1% every month if you file your claim early. People who claim benefits immediately, then, will experience a drop in their monthly checks of 25% to 30%, depending on their FRA.
You can also postpone receiving your Social Security benefits until after you turn 70. Your checks will increase by two-thirds of one percent each month during this time.
Generally speaking, it makes sense to submit your claim as soon as possible if you have a significant health problem or cannot afford to wait. For most people, however, waiting to apply results in a larger lifetime benefit.
Furthermore, after you have been collecting Social Security benefits for more than a year, you cannot go back and undo your decision to file for Social Security, even if you later change your mind. You could still be able to decide to stop getting checks after you reach your FRA, though, if you’re below it.
If you choose this option, your benefits will cease until you turn 70 years old, at which point you can request that your benefits be reinstated. During this time, you will accrue the delayed retirement credits that were previously mentioned.
When a 67-year-old starts receiving Social Security payments again at age 70, their average monthly income of $1,919 will increase by around $461. A little over $69,000 in Social Security checks would have been lost while benefits were suspended. They would still be paid $2,380 a month, though.
They would still make money by terminating benefits even if the recipient lived to be 85 years old. They would have gotten $414,504 between the ages of 67 and 85 if they had decided not to cease receiving benefits; instead, they would have received $428,400 in the 15 years between 70 and 85.
How can you decide if choosing to receive larger Social Security benefits is the best course of action for you?
A reliable estimate of life expectancy can be used to support the decision to suspend payments, but other factors—including the most significant one—must also be taken into account. For many seniors, the question is whether they have the money to temporarily halt their Social Security income.
Social Security provides at least half of the retirement income for over one-third of individuals 65 and older. They won’t likely have enough money to forgo receiving Social Security benefits for a considerable amount of time.
Still, a senior working and getting Social Security benefits might find it easy to cut off this cash stream. Although waiting the full three years will maximize your Social Security benefits, it’s not a black-or-white decision.
Benefits can be suspended for a year or even a few months if you so want. It is important to note that while the increase won’t impact the growth of your Social Security benefits, it will be permanent and could raise your lifetime benefit.
