Social Security benefits often constitute a vital part of retirement income, supporting retirees in managing everyday financial obligations. Achieving the highest possible monthly benefit is important and can be influenced by decisions made well before or at the commencement of retirement. For those planning their financial future, taking deliberate actions in 2026 could substantially impact the Social Security check amount received during retirement years.
Enhance Your Earnings Record by Increasing Wages
Your Social Security retirement benefit is primarily determined by your earnings history, focusing on the 35 years in which you earned the most. This means that increasing your reported income during 2026, if feasible, can elevate your benefits later on. Specifically, Social Security calculates average indexed monthly earnings based on the top 35 years of earnings, so higher earnings in the current year can replace a lower earning year from the past, raising your benefit amount.
Elevating your wages does not solely affect Social Security benefits. Higher income might also facilitate greater contributions to tax-advantaged retirement accounts such as IRAs or 401(k)s. Allocating more funds toward these accounts in 2026 enables the invested capital to grow over time, improving overall retirement savings.
Taxes paid on wages are a key factor since Social Security benefits correlate with the income on which taxes have been paid. For individuals working full-time or part-time, wage increases contribute directly to this base. Additionally, those earning income through gig or freelance work should note that such earnings, when reported properly, also contribute to Social Security credits and consequently to the future benefit calculation.
Verify and Correct Your Social Security Earnings Statement
Each year, the Social Security Administration (SSA) provides individuals with an earnings statement that details the wages reported and the taxes paid on those wages. This document also includes an estimated benefit amount reflecting current earnings data. It is imperative to review this statement carefully to confirm its accuracy.
Misreported or omitted earnings can have a detrimental effect on your future retirement benefits. If your earnings are understated in the SSA's records, your monthly benefit could be smaller than warranted by your actual income history. Correcting such inaccuracies requires contacting the SSA, potentially providing documentation to rectify the error. This process is accessible through the SSA’s official website by creating a personal account and accessing your Statement of Earnings.
Consider Strategic Timing in Claiming Benefits
Those reaching the age of 62 or older in 2026 become eligible to start receiving Social Security retirement benefits. However, the timing of filing significantly impacts the benefit amount you ultimately receive monthly. Filing for benefits before reaching full retirement age results in reduced payments, while delaying benefits beyond full retirement age increases monthly payments.
Full retirement age is 67 for individuals born in 1960 or later. Notably, delaying claim eligibility beyond this age can yield an 8% increase per year in benefit amounts, up to age 70. For example, if the computed benefit at age 67 is approximately $2,000 per month, postponing claims until age 70 could raise monthly payments to nearly $2,500.
This strategy of delaying benefits can be especially beneficial for individuals who do not possess ample savings in other retirement accounts. The augmented monthly income could offset smaller withdrawals from IRAs or 401(k) accounts, providing enhanced financial stability in retirement.
Conclusion
The decisions and steps taken in 2026 have consequential effects on the size of Social Security benefits received during retirement. By actively working to increase your taxable earnings, verifying the accuracy of your recorded income, and thoughtfully timing when to claim benefits, you can potentially secure a more substantial monthly Social Security income. Such proactive management is a critical element in optimizing financial readiness for one’s later years.