8 Ways To Maximize Social Security Benefits if You’re Single

Navigating Social Security as a single individual can be complex. But when planning for retirement, it is crucial to have a sound plan for maximizing your benefits.

Here are some key ways to optimize your Social Security benefits if you're single.

The Social Security Administration (SSA) uses a formula to determine the size of your Social Security benefits. As part of this process, the SSA takes up to 35 years of what is known as your “average indexed monthly earnings.”

The 35 years the SSA chooses when calculating your benefit are when you earned the most money. So, working later in life — particularly if your salary is especially high — can push your benefit amount higher.

Delaying your Social Security benefits beyond the age of 62 can significantly increase your monthly payments.

Also, for each year up until the age of 70 that you delay claiming benefits beyond full retirement age — typically 66 or 67, depending on your birth year — your benefit amount increases by 8%, according to the SSA.

As we mentioned earlier, waiting until age 70 to start collecting Social Security benefits will maximize the size of your monthly check.

This can substantially boost your monthly income, providing greater financial security in your later years.

Yes, it often makes sense to hold off on collecting Social Security benefits until you reach full retirement age or 70.

But that is not always true. There may be situations where it makes more sense to claim earlier.

For example, if your health is poor and you don’t expect to live a long life, it often makes sense to take Social Security earlier instead of later. If you wait too long, you might die before you get any Social Security benefits.

If you start collecting Social Security benefits before reaching full retirement age and continue to work, your benefits may be temporarily reduced if your earnings exceed certain limits.

In the short term, this will mean less money coming in each month. However, any benefits withheld due to excess earnings are not lost permanently. They will be factored into your future benefit payments once you reach full retirement age.

Still, if you haven’t reached full retirement age, it often makes sense to hold off applying for benefits until you stop working.

Widows or widowers may be eligible for survivors benefits based on their late spouse's Social Security earnings record.

This benefit can range from 71.5% to 100% of the deceased spouse's benefit amount. The precise percentage depends on several factors, including the survivor's age at the time.

Relocating to a state with no income tax or one that exempts Social Security benefits from taxation can help stretch your retirement income further.

States without an income tax include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

More than three dozen states and the District of Columbia don't impose taxes on Social Security benefits.

Divorced individuals may be eligible for Social Security benefits based on their ex-spouse's earnings record.

If you were married to your ex-spouse for at least 10 years, are currently unmarried, and are at least 62 years old, you might qualify for divorced spouse benefits. You can only use this option if your ex-spouse's benefit exceeds yours.

Having a sound strategy in place for filing for Social Security benefits is crucial before you retire.

As you navigate your Social Security options as a single individual, consider using the strategies on this list to maximize your benefits and secure your financial future.