How to increase your US pension by 24%: a simple life hack

It is worth the wait if you want to receive the maximum amount of pension possible. You can get your first check as early as age 62, although you won't be eligible for full benefits until full retirement age (FRA), which is 67, if you were born in 1960 or later. But it is possible to squeeze an extra 24% out of social security, reports USA Today.

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To maximize your Social Security benefit, you need to make more money, work for at least 35 years, and put off retirement as long as possible.

If you get Social Security at age 62, your benefits will be about 30% lower than if you were waiting for the FRA. But you don't have to start getting benefits from just your FRA.

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In fact, staying outside the FRA can be quite lucrative. You will receive a deferred pension credit of 8% for each year of waiting after the FRA expires. Your benefits then end at age 70, after which there is no reason to wait any longer. If your FRA is 67, deferring until age 70 will add 24% to your pension.

• If you are age 62 or older, your maximum Social Security benefit in 2022 is $2,364.
• If you are age 67 or older, your maximum Social Security benefit in 2022 is $3,345.
• If you are age 70 or older, your maximum Social Security benefit in 2022 is $4,194.

One exception: if you receive spousal benefits, you will not be able to receive deferred pension credits. You will get the most out of FRA.

What if I have already registered with Social Security?

Even if you have already started Social Security, you can reverse your decision to get deferred retirement loans. Once you reach the FRA, you can ask Social Security to suspend your benefits. Your benefits will be suspended for one month after you make the request. Social Security will automatically reset your payments with a larger amount to reflect the credits you have earned when you turn 70.

Should I wait until 70?

If you wait until age 70, you will receive the maximum Social Security benefit. But in many situations it doesn't make sense.

Your health is always of great importance. If you have serious health problems or your parents died relatively young, it often makes sense to start receiving benefits earlier. Postponement usually makes sense when you have a long life expectancy.

Many older people simply can't wait until age 70 to start receiving Social Security benefits. If you can no longer work and your savings are not enough to cover your basic expenses, postponing as long as possible is not an option.

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On the other hand, if you have significant savings in your retirement accounts, you may want to retire early so you can enjoy your golden years even more.

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But if you don't have enough retirement savings and can work, collecting an extra 24% from Social Security might be a smart move. The timing of your retirement is an important decision. Your health, cost of living, basic needs, and desired lifestyle are all factors you should consider.

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