This Simple Retirement Strategy Could Put an Extra $500 in Your Pocket Every Month

For many retirees, stretching their hard-earned savings to cover everyday expenses — and still enjoy life — can feel like an uphill battle. But financial planners are now drawing attention to a single, underutilized strategy that could boost retirement income by as much as $500 a month without requiring risky investments or drastic lifestyle changes.

The Secret? Delaying Social Security Benefits

While it may sound straightforward, delaying the age at which you start claiming Social Security can significantly increase your monthly check. By waiting beyond the earliest eligibility age of 62, retirees can grow their benefit amount by up to 8% for each year they delay, until age 70.

For example, someone eligible for $1,500 per month at age 62 could potentially receive $2,000 or more by holding off until full retirement age — and even higher if they wait until age 70. That could translate into an additional $500 every month for life.

“It’s one of the most reliable ways to boost lifelong income,” says a Phoenix-based retirement planner. “People often underestimate how much of a difference it can make in the long run.”

Why This Works

Social Security was designed to incentivize delayed claiming. The longer you wait — within the eligible window — the larger the payout. This increase is permanent, meaning once the higher benefit kicks in, it continues for the rest of your life and typically increases with annual cost-of-living adjustments.

For retirees who are in reasonably good health and can rely on other income sources for a few years, the rewards can be substantial. Those who have pensions, part-time jobs, or savings to bridge the gap often find this strategy especially effective.

Considerations Before You Delay

While the math is compelling, delaying isn’t always the right choice for everyone. Factors to consider include:

Health and Life Expectancy: If you have health concerns or a shorter expected lifespan, claiming earlier may be better.
Job Status: If you’re still working, delaying benefits can not only raise your future monthly payment but also help you avoid reduced benefits due to the earnings limit before full retirement age.
Spousal Benefits: In couples, coordinating claiming strategies can maximize combined lifetime income. For example, one spouse might claim early while the other delays to capture the higher benefit later.

A $500 Difference Adds Up

What may seem like a modest increase in monthly income can add up dramatically over time. For example, an extra $500 per month equals $6,000 per year. Over 15 years of retirement, that’s $90,000 in additional income — without taking on investment risk.

This approach can also provide peace of mind in later years when other assets may have been depleted. A larger monthly Social Security check means more guaranteed income you can count on.

Closing the Gap Until You Claim

The main challenge for many is figuring out how to cover living expenses until they start receiving the higher benefit. Possible strategies for bridging this gap include:

Working Part-Time: Even a few hours a week can help cover essentials during the delay period.
Using Savings Strategically: Drawing from retirement accounts early can make sense if it leads to significantly higher guaranteed income later.
Downsizing: Reducing housing costs for a few years could be worth the long-term payoff in benefits.

The Bottom Line

In a time when market volatility and economic uncertainty have left many older Americans anxious about their financial future, this one strategy stands out for its simplicity and reliability. Waiting to claim Social Security isn’t flashy, and it requires discipline, but for those who can make it work, the rewards can be life-changing.

“Imagine opening your bank account every month in retirement and seeing an extra $500 — for the rest of your life,” says the financial expert. “That peace of mind is priceless.”

If you’re nearing retirement age, now could be the perfect time to review your Social Security options and run the numbers. Sometimes, the smartest move is simply knowing when not to take what’s yours — at least for now.