Pure’s Principal, Marc Horner, CFP®, reveals powerful strategies to maximize your Social Security income and prevent you from leaving money on the table in retirement.
Transcript
If you’re approaching retirement or if you’re already there, Social Security is probably one of the biggest pieces of your financial picture. But do you actually know what the average retiree’s collecting right now? And more importantly, do you know how to make sure you’re not leaving money on the table today?
We’re breaking it all down. The real 2026 numbers. What drives your benefit and the strategies to maximize every dollar you’ve earned? So let’s start with the big question. What’s the average Social Security retirement benefit in 2026? Well, after the Cost of Living Adjustment, also known as COLA, the average monthly Social Security benefit for all retired workers is a little over $2,000.
Now, for some retirees, that’s a nice supplement to a pension or savings, and for others, it’s the majority of their income. Either way, it matters. A few key numbers to keep in mind: the maximum possible benefit in 2026 for someone retiring at full retirement age is a little over $4,000 a month, and if you delay the age 70, that number climbs even higher to be a little over $5,000 a month.
However, the minimum benefit for long-term lower-income workers can be much lower. So there’s a huge range, and where you land depends on choices you’ve already made, and also choices you can still make. Let’s understand how Social Security actually calculates your check. Number one, your earnings history.
Social Security looks at your 35 highest-earning years. Number two, your full retirement age or FRA. For most people watching this, your FRA is 67. Number three, when you claim. Claim early at 62, and your benefit is permanently reduced by up to 30%. Wait until 70, and you earn delayed retirement credits worth 8% per year.
Adding up to a 24% bonus over your FRA amount. Understanding these three levers is the foundation of everything else. Let’s talk about how to increase your social security. Strategy number one, work at least 35 years. Remember, Social Security uses your top 35 earning years. If you only work 30 years, five zeros get averaged in, and every additional year you work, even part-time, can replace a zero or a low-income year, boosting your average and your benefit.
Strategy number two: delay claiming as long as possible. This is the single best lever most retirees have every year. If you delay past your FRA up to age 70, your benefit grows by 8% on a $2,000 per month benefit. That’s an extra 160 bucks per month every year for life. And since benefits are indexed for inflation, that gap only grows over time.
If you’re in good health, delaying can be worth tens of thousands of dollars over a long retirement strategy. Three. Coordinate spousal benefits. Married couples have a huge advantage. A spouse who earned less or didn’t work at all can claim up to 50% of their partner’s benefit at FRA. The strategy is to have the lower earner claim first for income while the higher earner delays to 70.
To maximize the larger benefit, when one spouse passes, the survivor inherits the higher of the two checks. So maximizing that top benefit protects both of you. Strategy number four, check your earnings record for errors. This one is free and takes 10 minutes. Go to ssa.gov and create a My Social Security account.
Review your earnings record year by year. Errors like missing wages or misreported income directly reduce your benefit. If you spot a mistake, you can file a correction, and many people find errors they never knew about. Strategy number five: minimize taxes on your benefits. Here’s something a lot of people don’t realize.
Up to 85% of your Social Security benefit may be taxable depending on your combined income. Okay, so being strategic about your planning, things like doing Roth conversions before you claim managing withdrawals from taxable accounts or timing other income, that could all help reduce how much of your benefit gets taxed, which reminds me of one of my favorite sayings in financial planning.
It doesn’t really matter what you make; it matters what you keep. So let’s wrap it up. The average retiree in 2026 is getting somewhere around $2,000 a month from Social Security. But you do not have to settle for the average work your full 35 years delay claiming if you can coordinate with your spouse, audit your earnings record.
The government makes mistakes and plan smart around taxes. So these aren’t complicated moves, but the difference between doing them and ignoring them, that could mean missing out on hundreds of dollars a month for the rest of your life. So if you want a more personalized look at your situation, take advantage of our free Social Security analysis.
Discover whether it makes sense for you to delay taking your Social Security benefits. Identify the best claiming strategies to maximize your benefit amount. See how recent changes to Social Security might impact your benefit, and determine if you should claim your spousal or survivor benefits.
Subscribe to our YouTube channel.
IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER® certification is by the CFP Board of Standards, Inc. To attain the right to use the CFP® mark, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. 30 hours of continuing education is required every 2 years to maintain the certification.
