An annual increase through the cost-of-living adjustment (COLA) is great for millions of beneficiaries. But there is another way Social security audits to $461, which many Americans may not be aware of. Social Security retirement benefits are increased almost every year through cost-of-living adjustments (COLAs), although the increase is usually not that large. The average benefit increased by $59 per month last year, and the COLA for 2025 is expected to be significantly lower. Fortunately, retirees have other options besides COLAs to increase their Social Security benefits after retirement. There is an alternative that can increase your monthly benefit by up to $461, but there is a catch.
What you need to know about the option to increase your Social Security checks by $461
You may have heard that the amount of Social Security checks you receive depends on your age when you file. If you are eligible to receive your full Social Security benefit, you have full retirement age (FRA). For today’s workers, that age is between 66 and 67, but you don’t have to file at that age. You can file for Social Security benefits as early as 62, but you’ll receive smaller payments. For the first 36 months after you file, you’ll lose 5/9 of 1% each month. If you file early, you’ll lose an additional 5/12 of 1% each month. Therefore, people who file for benefits immediately will see a 25% to 30% reduction in monthly checks, depending on your FRA. In addition, you can also delay receiving Social Security checks until you reach age 70. During that time, your checks will increase by two-thirds of 1% each month.
If you can’t afford to wait, or if you have a serious medical condition, it generally makes sense to file your claim early. Delay in application results in a higher lifetime benefit for most people. Additionally, even if you later change your mind, if you have been receiving Social Security checks for more than a year, you cannot reverse your decision to claim Social Security. However, if you are below your FRA, you may still be able to choose to stop receiving checks after you reach your FRA. If you do, your checks will stop coming until you turn 70½, or you can apply to have your benefits reinstated, during which time you will be credited with the delayed benefit credits mentioned earlier.
A 67-year-old with an average monthly Social security benefits of $1,919 would mean a monthly increase of about $461 when they resume receiving benefits at age 70. Social Security checks totaling just over $69,000 would have been lost during the suspension of benefits. However, they would still receive $2,380 per month. By stopping benefits, they would still be profitable even if the person turned 85. If they had chosen not to stop benefits, they would have received $414,504 between ages 67 and 85; instead, they would have received $428,400 over the 15 years between ages 70 and 85.
How do you know if this Social Security check increase option is right for you?
The decision, Suspend services can be made based on a good estimate of life expectancy, but other factors, including the most important, must be considered in deciding whether to proceed with the decision. For many seniors, the question is whether they can afford to temporarily suspend their Social Security benefits. More than a third of those over 65 receive at least half of their retirement income from Social Security. They are unlikely to have the means to go without Social Security payments for an extended period of time.
However, for a retiree who is working and collecting benefits, it shouldn’t be difficult to suspend this source of income. While delaying the full three years will optimize your benefits, it’s not a binary decision. If you want, you can suspend benefits for a year or even a few months. Although the increase won’t affect the growth of your benefits, it’s permanent and can result in a higher lifetime benefit for you.
