Retired workers in the U.S. are often reliant on Social Security benefits for their monthly income. Find out how to maximize your payments.
What can reduce your Social Security retirement benefits?
In the U.S., eligible individuals can start claiming Social Security retirement benefits from the age of 62, with the program providing a vital form of financial support for tens of millions of people every month.
The size of the monthly payments is dependent on the work history, employment status and personal circumstances of the recipient. This means that actions you take during your working life have a direct impact on your Social Security payments in retirement.
There are a few things that can actually work to reduce your benefits, so try to avoid the following if you want to maximize your post-retirement income…
Claiming retirement benefits early
The swiftest way to reduce your retirement benefits is by claiming the support prematurely. Eligible Americans may be able to file a claim once they reach 62, but you should always try to hold off until you reach full retirement age (FRA) at the earliest.
For people born between 1943 and 1954, the FRA is 66. That threshold increases by two months for every year born after 1955, until it reaches 67 for those born in 1960 or later.
If you can hold off on initiating a claim until you turn 70, you’ll be the eligible for the maximum monthly payment available to you. In 2026, the highest possible amount you can claim by waiting until you’re 70 is $5,181.
Working while claiming benefits
You can start receiving retirement benefits while still working, but doing so before you reach your FRA will result in a proportion of your benefits being withheld. This will not lower your lifetime benefits, but does affect the amount you receive initially.
Once you hit your FRA, the Social Security Administration (SSA) will recalculate your entitlement and you should start to receive larger payments.
Working for fewer than 35 years
Your Social Security entitlement is based on your 35 highest-earning years (adjusted for inflation). If you have not worked for 35 years when you initiate your retirement-benefits claim, you will be given a wage of $0 for the missing years. This will lower your primary insurance amount (PIA) and reduces the size of your monthly retirement checks.
Retiring when your earnings are high
As a general rule, the more you earn during those 35 years, the larger your Social Security retirement checks will be. If you find yourself earning more as your approach the end of your career, you could increase your PIA by continuing to work longer before claiming Social Security. The additional years of higher earnings will replace your lowest-earning years and increase your monthly benefit amount.
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