When planning for retirement, ensuring you get the most out of Social Security is one of the smartest moves you can make. Social Security provides a guaranteed, inflation-adjusted income for life—making it a critical piece of your retirement income strategy. But how far will your Social Security check really take you, and what can you do to maximize your benefits?

How Far Will Your Social Security Go?

For many Americans, Social Security serves as the cornerstone of their retirement income. However, it typically only replaces about 40% of a person’s pre-retirement income, according to the National Academy of Social Insurance. For example, in 2020, a worker earning an average salary of $51,795 per year would receive about $1,711 per month in benefits if they retire at full retirement age. While this may cover a portion of living expenses, most retirees will still face a significant income gap.

Your exact benefit amount will depend on your lifetime earnings. Those with lower incomes will see a higher percentage of their pre-retirement income replaced by Social Security. For instance, a worker earning around $23,308 per year would receive $1,045 per month, replacing about 53% of their income. On the other hand, high-income earners, such as someone making $127,061 annually, would receive $2,761 per month, covering just 26% of their previous salary. This underscores the need for additional sources of income to bridge the gap.

Strategies to Maximize Your Social Security Benefits

While Social Security may not fully cover your retirement needs, there are strategies you can use to get more out of this vital benefit.

1. Work Longer to Increase Your Benefit
Social Security benefits are calculated based on your highest 35 years of earnings. If you haven’t worked a full 35 years, the missing years are counted as zeros in your earnings record, which reduces your benefit. By working longer and increasing your earnings, you can replace lower-earning years with higher-earning ones, thereby boosting your future benefits. Even if you're already receiving Social Security, continuing to work can still enhance your benefit as long as you’re paying into the system.

2. Delay Claiming for a Higher Payout
Although you can start collecting Social Security as early as age 62, doing so will permanently reduce your monthly benefit. If you wait until your full retirement age (66 or 67, depending on your birth year), you’ll receive 100% of your calculated benefit. For those who delay even further—up to age 70—Social Security benefits increase by 8% each year. This could mean substantially larger checks, which may be especially important if you expect to live a long life or if you want to maximize survivor benefits for your spouse.

3. Maximizing Spousal and Survivor Benefits
If you're married or have been married, you may be eligible for spousal benefits, which can be up to 50% of your spouse's Social Security benefit. If there’s a significant income or age difference between you and your spouse, it may make sense for one spouse to claim early while the other delays claiming to maximize benefits.

In the case of divorce, you may still be able to claim spousal benefits based on your ex-spouse’s earnings, provided you were married for at least 10 years and remain unmarried. Similarly, survivor benefits allow widows or widowers to receive their spouse's benefit if it's higher than their own. For divorced individuals, survivor benefits are available as long as the marriage lasted at least 10 years.

Next Steps: Creating a Comprehensive Retirement Income Plan

Maximizing your Social Security benefit is an important part of retirement planning, but it's only one piece of the puzzle. A financial professional can help you evaluate how Social Security fits into your overall retirement income strategy, identify any income gaps, and explore other options like annuities that provide protected lifetime income.

By optimizing your Social Security benefits and incorporating additional income sources, you can help ensure that you have enough money to cover your retirement expenses while preserving your other assets.