3 Ways to Maximize Social Security Without Working Longer

Key Points

• Social Security is an important source of guaranteed lifetime income.

• You may be able to maximize your benefits in multiple ways without working longer.

• Being strategic on how you invest for retirement can help you bring home more Social Security.

• The $23,760 Social Security bonus most retirees completely overlook ›

Maximizing Social Security benefits makes sense so you can get the most inflation-adjusted lifetime guaranteed income possible.

But most of the advice related to maximizing Social Security benefits is to work longer and claim later. Doing that is absolutely worthwhile, if possible, and it will make a huge impact. But it isn't feasible for everyone.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

The good news is that there may be other ways to maximize the money you have coming in from Social Security, especially if you start early. Here are a few techniques to consider trying.

Image source: Getty Images.

1. Explore all the benefits available to you

One of the best ways to make sure you get the most Social Security income is to ensure that you are not leaving any benefits you're entitled to on the table.

For example, if your career history is short or if your earnings were not very high during the course of your career, you may be able to qualify for a higher Social Security benefit if you're married and you claim spousal benefits. You can qualify for up to half of your spouse's primary insurance amount (PIA) if you claim at your full retirement age. And these benefits are even available after divorce, as long as your marriage lasted for at least a decade.

If your spouse passed on, you may also be eligible for survivor benefits. And you can collect these even if you're remarried to someone else as long as you didn't get remarried before age 60 (or age 50 if disabled).

And if you can't work before your full retirement age due to a health issue, it's worth exploring whether you qualify for Social Security Disability Insurance (SSDI) rather than rushing into retirement checks at 62 and getting hit with early filing penalties that reduce your benefits.

Unfortunately, people overlook some of the benefits they're eligible for and cost themselves money by doing so, and you don't want to be one of them if you're hoping to maximize your Social Security checks.

2. Invest in a Roth to avoid Social Security taxes

Another way to maximize your Social Security is to avoid losing it to federal taxes. And that's a growing risk, as the thresholds at which the IRS begins taxing benefits are not indexed to inflation.

More retirees owe taxes each year on benefits because of normal wage growth, which leads to higher incomes but not necessarily a lot more buying power as prices are constantly increasing.

Provisional income counts in determining when you owe federal tax on Social Security. Provisional income is half your Social Security check, plus some non-taxable income and all taxable income. Single tax filers with provisional income above $25,000 and those who file taxes as married filing jointly with incomes above $32,000 are going to owe tax on at least part of their Social Security benefit.

This can likely be avoided if your retirement income is coming from a Roth IRA or Roth 401(k), though. Qualified distributions from these accounts don't count in provisional income, so you're less likely to cross that $25,000/$32,000 limit that leads to an IRS bill.

3. Live in a state where benefits aren't taxed

Finally, you will also want to avoid taxes at the state level if you want to maximize Social Security income. So this means being strategic about where you live as a retiree. Avoid these eight states that tax Social Security benefits, and you can keep more of your retirement benefit in your bank account.

None of these steps require you to work more, and they all help you maximize the money you have coming from Social Security, which should help make your retirement a little more secure.

The $23,760 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.

One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.

View the "Social Security secrets" »

The Motley Fool has a disclosure policy.