1 little-known Social Security rule can increase your monthly check by up to 26.7%, even if you're already receiving benefits

You can still take control of your Social Security benefits after you file a claim.

You may not realize it, but your Social Security check isn’t set in stone once you file for benefits.

On top of the annual COLAthat increases monthly benefits to keep up with inflation, there are several factors that can result in an increase in your income. Examples of this include switching to spousal or survivor benefits, or no longer being subject to the pension income test.

Still, the age at which you decide to initially file for benefits will have a huge impact on your finances in retirement. Claiming early usually means a smaller monthly benefit compared to waiting until you’re older. The difference between claiming as soon as possible at age 62 and waiting until age 70 could amount to a 77% increase in benefits.

While the ship may have sailed on getting that 77% boost for the wait, there’s still a strategy where you can take back control of your monthly benefit by using a little-known rule. Some retirees could increase their Social Security checks by as much as 26.7%.

A Social Security card sandwiched between hundred dollar bills.

Image source: Getty Images.

The three factors that affect your Social Security benefits

To understand the strategy for increasing your benefit to 26.7%, it’s important to understand the basics of how the government calculates your monthly check. There are only three factors that determine the size of your first Social Security check:

Your earnings throughout your career
When you were born
The age at which you apply for benefits

When you apply for benefits, the Social Security Administration (SSA) will review your earnings history and adjust each year’s earnings for changes in wage inflation. Then the 35 highest earning years are taken and the average is found. That number is divided by 12 to determine your average indexed monthly earnings (AIME).

The SSA takes your AIME and connects it to the Social Security Benefits Formulathat your main insurance amount (PIA). The PIA is what you qualify for in the month you reach full retirement age.

The full retirement age depends on your date of birth. Those born between 1943 and 1954 reached full retirement age at age 66. But the full retirement age increased by two months for each year a person was born after 1954, until reaching age 67 for anyone born in 1960 or later.

The final factor that determines the size of your first benefit check is when you file a claim. If you apply before your full retirement age, you will receive a reduction on your PIA. If you wait to file until after full retirement age, you will accrue deferred pension credits.

The table below shows the impact claiming your age has on your monthly benefit in relation to your PIA:

Year Born	Age 62	Age 63	Age 64	Age 65	Age 66	Age 67	Age 68	Age 69	Age 70 or later
1943 to 1954	75%	80%	86.7%	93.3%	100%	108%	116%	124%	132%
1955	74.2%	79.2%	85.6%	92.2%	98.9%	106.7%	114.7%	122.7%	130.7%
1956	73.3%	78.3%	84.4%	91.1%	97.8%	105.3%	113.3%	121.3%	129.3%
1957	72.5%	77.5%	83.3%	90%	96.7%	104%	112%	120%	128%
1958	71.7%	76.7%	82.2%	88.9%	95.6%	102.7%	110.7%	118.7%	126.7%
1959	70.8%	75.8%	81.1%	87.8%	94.4%	101.3%	109.3%	117.3%	125.3%
1960 or later	70%	75%	80%	86.7%	93.3%	100%	108%	116%	124%

Data source: Social Security. Calculations by author.

If you look in the rightmost column you will see that retirees can receive 24% to 32% on top of their PIA by waiting until age 70 to claim benefits. But even if you’ve already filed your claim, you can still earn valuable deferred retirement credits.

The little-known strategy to increase your monthly benefit

If you filed for benefits early but wish you had waited a little longer, there is still hope for you: Ask the SSA to suspend your benefits.

When you suspend Social Security benefits, you will no longer receive a monthly check. In return, the SSA will begin adding delayed retirement credits to your account. The credits are calculated as a percentage of your previous benefit rather than your PIA.

You can suspend benefits from your full retirement age, up to one month before you reach age 70. You can resume benefits at any time. The SSA will automatically resume your benefits once you reach age 70, if you have not already claimed them.

If someone born in 1958, with a full retirement age of 66 and eight months, decides to suspend their benefits in the month in which they reach full retirement age, they can increase their current benefits by up to 26.7%. If you have already reached full retirement age, you can still increase your benefit as long as you are not yet 70. And those born after 1958 can increase their benefits by 25.3% (birthdays in 1959) or 24% (1960 or later). .

However, suspending benefits will not apply to everyone. Anyone who receives a benefit in your file (spouse or children) will no longer receive this benefit. Marital benefits will return to personal benefits.

It’s also worth pointing that out Medicare enrollees are responsible for paying their Part B premiums directly. The SSA typically deducts that amount from your monthly check.

If your financial position improves at age 60 and you’re comfortable going without Social Security for a few years, it may make sense to suspend your benefits. It could mean much more Social Security income during your lifetime.