The right moves on your part could lead to a more generous retirement payday.
Ideally, you’ll save well for retirement so you won’t have to deal with financial stress once your senior years arrive. But there’s a good chance you’ll also end up dependent on Social Security to some degree.
That’s why it’s so important to do what you can to score the highest Social Security paycheck. And if you play your cards right in the new year, you can set yourself up for a larger benefit once you retire. Here are three key moves to make in 2025.
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1. Boost your earnings
The Social Security Administration (SSA) calculates your monthly retirement benefit based on the amount of income you earned. So the more you earn during your career, the higher a payday you might get down the line. That’s why it pays to try to boost your earnings in 2025.
Of course, a higher paycheck also means more financial wiggle room in the near term to not only cover your bills, but do things like fund your 401(k) or IRA. But it could also lead to more Social Security in retirement. So to that end, work on growing your job skills, as that could land you a promotion that comes with a raise.
You should also know that it’s not just earnings from a salaried job that could set you up for more Social Security. Side hustle income counts, too. So even if your salary stays the same all year long, if you manage to earn an extra $5,000 from a lucrative side gig, it could help you increase your Social Security checks in retirement.
2. Make sure your earnings record is correct
It’s not a given that the SSA will have accurate earnings data for you on record. And if your income is underreported, it could lead to a smaller monthly benefit down the line.
Make sure to check your earnings record at some point in 2025 to ensure that it’s accurate. You can do so by creating an account on the SSA’s website and accessing your most recent earnings statement. That statement will contain helpful a host of information, like an estimate of your future monthly Social Security benefit.
3. Keep working instead of retiring and claiming benefits
If you’ll be turning 62 in 2025, it means you’ll be eligible to start claiming Social Security, since that’s the earliest age to file. But continuing to work could pay off for a couple of reasons.
First, waiting until full retirement age helps you avoid a reduction to your monthly Social Security benefit. And even if you’ll be reaching full retirement age in 2025, delaying your filing past that point results in a boosted benefit for life. You’re rewarded financially for postponing your claim up until you turn 70.
Continuing to work at that stage of life could also lead to more Social Security. The SSA accounts for your 35 highest-paid years of income when calculating your monthly benefit. If you’re able to replace a year of lower earnings with higher earnings, it could result in a larger benefit for you to enjoy once you decide to sign up.
The decisions you make in the new year could impact the amount of money you get from Social Security down the line. Keep these moves on your radar, as they could lead to a more financially stable retirement.
