Strategies for Maximizing Social Security Benefits

Just how important are Social Security payments for most retirees? Consider this: According to a survey by Gallup, more than one-in-three Americans say that Social Security payments are or will be a "major" source of retirement income. That's the highest percentage in 15 years.

When you also factor in that more than 30 percent of Americans have saved absolutely nothing for retirement, it's highly likely Social Security payments will become even more indispensable to American retirees in the coming years.

Given the relevance of this issue, let's review some core strategies for maximizing your Social Security payment.

Wait as Long as Possible to Collect

Simply waiting is perhaps the most impactful thing you can do to maximize your benefits. Every year you wait beyond your full retirement age will increase your benefit, up to a maximum of 70 years old. The difference is fairly dramatic: Wait until 70, and you'll get 132-percent of your normal full retirement benefit.

Now, there's a flip side to this: You may not live long enough to make up for those years of missed payments. If you end up living well into your 80s or 90s, however, waiting to claim your benefits is a massive financial winner.

Work at Least 35 Years

Because your earnings are calculated over the average of your 35 highest-paying years, it definitely pays to work the full 35. If you only work 30 years, for example, you'll have five zeros factored into your benefit calculation -- something that can seriously lower your payment.

Claim Your Spouse's Payment

If you've been married for at least one year, you can claim a full spousal benefit equal to 50-percent of your partner's benefit. You may also claim this benefit for an ex-spouse provided that you were married for at least ten years. If you've been widowed, this benefit may rise as high as 100-percent.

Ensure You Don't Earn Too Much in Retirement

If you're younger than full retirement age and you earn income, your benefit may be reduced. The income limit for 2016 is $15,720. The Social Security Administration will deduct $1 for every $2 you earn over this figure. Once you reach full retirement age, you may work without penalty.

Make Sure Your Information Is Accurate

The government isn't infallible and mistakes do occur. To make sure you get credit for everything you've paid into the system, download your annual statement from SSA.gov and review it to make sure all your data is verifiably accurate.

The Takeaway

Social Security payments play a vital role in providing financial security for millions of retirees. Use the tips listed above to maximize your own payments.