Every ideal retirement portfolio for most Americans contains a goodly amount of

social security. Few, however, have known how to get the most out of their benefits.   Knowing when in one's life to take the benefits, how the benefits are computed, and    what strategies are used to get the best out of social security will make the system be paid up at its fullest.

When to Claim Benefits from Social Security

The decision you have to make at its most critical is when you should begin taking   Social Security benefits. Once again, you will get less in dollar and cents if you start taking it at 62.

However, you are free to start taking this benefit at that age. Your full retirement age is the age between 66 and 67, depending on your birth date, at which point you may start receiving benefits without any reduction in your benefit amount.

Early Retirement (Age 62)

You receive smaller payments over a longer number of years. This is suitable for

individuals who require the money sooner, particularly if someone is extremely ill and will not have any significant life remaining that can utilize the delayed receipt of one's benefit.

Full Retirement Age (66-67)

You can begin receiving the full benefit at your FRA. Most people end up in this option, which spreads out over early and late retirement without gaps.

Delaying Benefits

If you delay until age 70, you will receive the maximum benefit-a 32 percent increase over what you would have received if you had started taking benefits at your FRA.

You can wait financially and get fit for the day.

How Social Security Benefits Are Calculated

The dollar amount you qualify for is calculated based upon your highest 35 years of earnings. The SSA takes the average of your monthly earnings and adds that to a   formula for your Primary Insurance Amount, or PIA. If you do not have 35 years of   work, you will be filled in with zeros, which can eat away at your benefits.

Strategies for Increasing Your Social Security Benefits

1. Work for At Least 35 Years

Because your benefit is based on the highest 35 years of earnings, you will always work at least that many years. But working extra years tends to add to your benefit because the extra years include higher-earning years.

2. Wait for Benefits until Age 70

If you don't mind waiting, bringing in the benefit to 70 will increase the monthly

payment somewhat considerably. This is a pretty nifty strategy if one can make it to advanced old age.

3. Time Your Spouse s Benefits Together

As the spouses time when one of them files for his or her benefit they can maximize their combined lifetime benefits. Here, one spouse can claim earlier while the higher earner delays his or her application and increases the survivor benefit for the

surviving spouse

4. Spousal Benefits

If you significantly out-earn your spouse, then likely you will qualify to receive spousal benefits, which allows you to claim as much as 50 percent of your spouse's benefit,    and you could end up having a higher total take-home pay when you file than if you    had filed solely on your own earning record.

5. Lockdown Your Income Source to Reduce Taxes

If your overall income is more than specific limits, you will be taxed on up to 85

percent of your Social Security benefits.  You'll reduce the amount of withdrawn tax from retirement accounts or withdraw distributions from your Roth IRAs thereby

reducing your taxable income and subsequently reducing the taxes payable on your Social Security.

Special Cases

1. Survivors' Benefits

Survivor benefits may be paid starting at age 60.  These are determined after taking into consideration the spouse's benefit up to 100% and their Social Security

enrollment date.  These often are lifelines for the widow worker.

2. Divorce

You may be eligible to receive benefits on your ex-spouse's record if you were

married for ten years and are still living, or if you were divorced. That does not

reduce any benefit to which your former spouse is entitled to receive, and you may apply for benefits even if your former spouse has actually remarried.

3. Government Pension Offset

On the same note, there are other civil servants whose jobs in the previous

employment did not add contributions to the Social Security scheme. This has been     determined to be due to some of the civil employment rolls. For instance, under GPO, short for Government Pension Offset, there is a reduction in Social Security benefits.   This is something that public sector employees need to watch out for as they plan for   retirement.

Conclusion

Maximizing Social Security Benefits The right preparation and understanding of the system basically set the stage. For example, a worker who earned more than 35

years maximizes his monthly payment by deferring the benefits when possible,

coordinating with his spouse's benefits, and managing taxable income. Social

security is usually the only source of retirement income, so the individual must be very well-prepared with information when and how to take benefits, making all the difference in financial life.