5 Social Security tips to consider

Claiming Social Security isn’t cut and dry. There are options and the more you know about the program, the more able you’re to take full advantage.

The Motley Fool recently released a quick list of tips to help readers determine when to file and how to maximize their benefits.

Know your full retirement age. There isn’t one set age for claiming full retirement benefits. Full retirement age has changed based on the year of your birth. Do you know how this affects your retirement year? Your spouse’s?

2. Understand how your work history determines your benefits. Social Security is based on the average monthly wages of your 35 most profitable years of work. If you haven’t reached 35 years, that means a zero will be factored in and lower your average. Are you only a few years away from reaching that 35-year mark? Would you like to replace some of your earlier years with a few more years at your current salary?

Check your earnings statements annually. The Social Security Administration issues yearly earning statements (through the mail if you’re 60+, online if you’re below 60). Since Social Security is based on your personal earnings, it’s important that these statements are correct to make sure you aren’t leaving any dollars on the table. Have you checked your yearly statements?

Determine how much you can earn without having benefits withheld. If you start collecting Social Security at your full retirement age, this one won’t affect you. But if you start collecting earlier, there’s a limit to how much you can continue to earn while also collecting Social Security. Will your current paycheck put you at risk of having dollars withheld?

Consider the upside of delaying benefits. There’s no requirement that you have to start collecting your Social Security the moment you reach full retirement age. In fact, waiting will boost your benefits. Can you afford to delay cashing in on Social Security for a few additional years?