Retirement Social Security

4 Little-Known Social Security Loopholes That Could Boost Your Retirement Income

Use suspension, the do-over, and timing to raise lifetime benefits.

By David Maina

Edited by Laura Hohenstein

Updated Oct. 29, 2025

Social Security anchors retirement income for most Americans. Nearly nine in ten people over 65 receive a check, and those dollars cover about a third of a typical retiree's budget. That makes every dollar count. A small boost here or a smart tax move there can have a real impact on your monthly check and long-term comfort.

The encouraging part? The system has a few lesser-known rules that can help you maximize your senior benefits or protect them over time. They're perfectly legal, just often overlooked. Here are four worth knowing.

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Voluntary payment suspension

Once you reach full retirement age (FRA), you can press pause on your Social Security and let it grow. This move, called a voluntary suspension, lets your future checks earn delayed retirement credits. For every month you hold off, you earn delayed retirement credits, worth about 8% more per year of delay.

This increase maxes out at age 70, meaning if you suspend from FRA to 70, you can boost your monthly benefit by as much as 32% (8% × 4 years). In practical terms, if your benefit at FRA is $2,000 a month, waiting until 70 would raise it to about $2,640.

Often, retirees claim early out of necessity or by mistake and later realize they could have received more. Voluntary suspension offers a "second chance" to increase your checks, essentially trading a few years of forgone payments for permanently larger checks as longevity insurance.

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12-month do-over rule

Social Security gives you a rare second chance to change your mind. It's called the 12-month do-over rule, and it lets you withdraw your application for benefits within the first 12 months of starting, pay back any benefits you received, and then reapply at a later date as if you never claimed in the first place. When you later claim again, your monthly benefit will be higher, reflecting the delayed filing.

The do-over isn't for everyone, though. You need the means to repay the benefits, and giving money back can sting in the short run.

However, for those who claimed early and have buyer's remorse, or those who unexpectedly can afford to delay benefits, this withdrawal rule provides a rare second chance. It lets you correct course and maximize your Social Security income for the long term.

Survivor and ex-spousal benefits

Losing a spouse or closing a long chapter of marriage can rattle your finances as much as your heart. In moments like these, it often feels like there are very few financial breaks.

Social Security may not remove the stress, but one lesser-known rule can ease it. In some cases, you can take one benefit now and let another grow so your monthly check is larger later

Here's how it works at a glance:

Survivors (widows or widowers) can take one benefit first, either their own or their late spouse's, and then switch later to the higher one.
Divorced spouses who were married at least 10 years and are now unmarried may be eligible for a benefit on an ex-spouse's record, even if that ex has not claimed yet.
Surviving divorced spouses have the same rights as widows and widowers, so they can choose which benefit to start with and when to switch.

In all cases, check with Social Security about your personal eligibility. These strategies can be a bit complex, but they can potentially mean larger cumulative benefits over your lifetime.

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Managing income to reduce taxes on benefits

After all those years paying into Social Security, you shouldn't have to hand a big piece of it back in taxes. Yet many retirees don't realize that up to 85% of their benefits can be taxed once other income pushes them past certain limits.

The tax is determined by your combined income, essentially your adjusted gross income (AGI) plus any nontaxable interest (like from municipal bonds) plus half of your Social Security benefit.

Then they check that number against three income ranges:

If you're single and your total income is under $25,000, or married and it's under $32,000, you won't pay any taxes on your Social Security.
If you're single and make between $25,000 and $34,000, or married and make between $32,000 and $44,000, you may have to pay taxes on up to half of your benefits.
If your income is above $34,000 (single) or above $44,000 (married), you might pay taxes on up to 85% of your Social Security.

One strategy to soften this hit is to convert some of your traditional retirement savings into a Roth IRA before or early in retirement. The idea is to pay taxes on those funds once at a potentially lower tax bracket, and then have them grow and be withdrawn tax-free later. Once in the Roth, withdrawals are not subject to federal tax and won't impact the taxation of your Social Security benefit.

It's worth noting that this strategy doesn't increase your Social Security benefit itself. Rather, it increases the net benefit you get to keep by cutting down Uncle Sam's share.

Bottom line

Before you try any of these strategies, make sure you know exactly how the rules apply to you. Social Security rules can change, and small details like birthdate cut-offs or income limits can decide whether a move makes sense. Also, a quick talk with a financial advisor can help, because they can show you when a suspension, a withdrawal, or a tax adjustment might actually pay off when you're planning for retirement.

Social Security may be automatic in many ways, but a little proactive strategy can yield big rewards. As you approach retirement or even if you're already in it, take a moment to review these opportunities. You might discover that a slight change in course could boost your financial well-being for decades to come.

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