Social Security retirees with low pensions: The Social Security Administration has officially confirmed that retirees receiving low pension amounts may qualify for increased benefits through several little-known strategies. While most retirees understand their benefits are largely fixed once claimed, there are actually ways to boost payments even after retirement that many people overlook.
Understanding Why Benefits Might Be Low
Many factors contribute to lower Social Security payments. Those who claimed benefits early (before full retirement age) face permanently reduced amounts. Others may have limited work histories or gaps in their earnings records. Even with annual cost-of-living adjustments, these lower payments often struggle to keep pace with real expenses.
The Hidden Power of Spousal Benefits
One of the most valuable yet underutilized strategies involves claiming benefits based on a spouse’s work record. If you’re currently married or were married for at least 10 years, you may be eligible for up to 50% of your spouse’s benefit amount. This can be especially helpful when one partner earned significantly more during their working years. The key requirements are being at least 62 years old and having your spouse already receiving benefits.
Fixing Your Earnings Record Can Pay Off
Many retirees don’t realize that errors in their official earnings history could be costing them money every month. The Social Security Administration calculates benefits using your 35 highest-earning years, but sometimes early-career jobs or freelance work gets left out of the records. By reviewing your “My Social Security” account and submitting corrections with supporting documents like old tax returns, you might significantly increase your monthly payment.
Working in Retirement: More Than Just Extra Income
Continuing to work, even part-time, offers two potential benefit boosts. First, new earnings can replace low-income years in your benefit calculation. Second, if you’ve reached full retirement age, you can choose to temporarily suspend benefits and earn delayed retirement credits worth 8% per year until age 70. Many retirees find consulting work or turning hobbies into income streams provides both financial and personal fulfillment benefits.
Taking Action for a More Secure Retirement
The SSA emphasizes that retirees shouldn’t assume their current benefit amount is set in stone. By exploring spousal benefits, correcting earnings records, and considering strategic work options, many can achieve meaningful increases in their monthly payments. For personalized guidance, the SSA recommends visiting their official website or scheduling an appointment at a local office to discuss your specific situation.
