Unlock the $22,924 Social Security Bonus: A Guide to Claiming Strategies Most Retirees Miss

Most retirees are leaving substantial money on the table when it comes to their social security benefits. Research shows that the average potential boost amounts to approximately $22,924 annually—yet fewer than 3 in 10 Americans even know the strategies that could unlock this bonus. The good news? There are legitimate ways to recover from early claiming decisions, and understanding these options could dramatically increase your lifetime benefits.

The decision of when to claim social security is one of the most consequential financial choices retirees make. Yet surprisingly, about 90% of newly eligible retirees begin taking benefits before reaching age 70, with more than 20% claiming at the earliest possible age of 62. Many later regret this choice once they understand what they’ve given up.

How Your Claiming Age Determines Your Social Security Payout

The amount you receive from social security depends on two critical factors: your lifetime earnings history and the age at which you claim. The Social Security Administration calculates your “Primary Insurance Amount” (PIA) based on your 35 highest-earning years, adjusted for inflation. This figure represents your full benefit at your designated full retirement age—which varies by birth year, ranging from 66 to 67 for those born between 1943 and 1960 or later.

Claiming before full retirement age means accepting a permanent reduction. For retirees born in 1960 or later, claiming at 62 results in only 70% of your PIA. But delaying until 70 bumps that figure up to 124%—a difference that can translate into hundreds of thousands of dollars over a lifetime.

Consider a concrete example: if your average PIA in 2022 was approximately $1,984 monthly, claiming at 62 would yield about $1,389 per month. Waiting until age 70 would increase that to roughly $2,460—a difference of $1,071 monthly, or nearly $12,852 annually. Over 20 years, this delay could add up to a $22,924 annual bonus in compound benefits compared to the earliest claiming age.

The table below illustrates how birth year affects both your full retirement age and your benefit percentage at different claiming ages:

(Source: Social Security Administration data)

The Little-Known Do-Over: Your Second Chance at a Bigger Social Security Benefit

If you’ve already claimed social security and now realize you left money on the table, don’t despair. The Social Security Administration allows a one-time “do-over” that essentially erases your claiming decision—but only under specific conditions.

You can withdraw your application using Form SSA-521, but this option comes with strict limitations. You must act within 12 months of your benefit approval, and you must be willing to repay every dollar you’ve received, including any spousal benefits claimed on your record and Medicare premium deductions.

The payoff, however, can be substantial. By withdrawing and waiting to claim later, you avoid the early-claiming penalty entirely and begin earning delayed retirement credits—an 8% annual increase for each year you wait past full retirement age. For someone born in 1960 or later, this could translate into a 77% increase in your eventual monthly payout.

A recent survey from the Nationwide Retirement Institute found that just 29% of retirees were even aware this do-over option existed, meaning countless Americans are missing this opportunity to recover from an early claiming decision.

Suspending Benefits: Another Path to Maximize Your Social Security Income

If more than 12 months have passed since you claimed social security, the do-over option is no longer available. However, provided you’ve reached your full retirement age, you have a second option: temporarily suspend your benefits.

Suspending allows you to earn delayed retirement credits at a rate of 8% per year—or roughly two-thirds of 1% monthly. Your suspended payments can be reinstated at any time, or the Social Security Administration will automatically restart them at age 70 if you take no action.

There’s an important caveat: suspending does not eliminate the penalty from early claiming. Any reduction you accepted by claiming before full retirement age will still apply when you resume benefits. However, the delayed credits you earn during suspension add meaningfully to your payout going forward.

Contacting the Social Security Administration by phone or mail initiates the suspension process, making it one of the more accessible options for those seeking to increase their long-term social security income.

The Path Forward

The strategies outlined above represent genuine opportunities to claim your $22,924 social security bonus or greater. Most retirees never discover these options because they’re overshadowed by simpler—but less advantageous—claiming strategies. Understanding your full menu of choices, especially the do-over and suspension options, could be one of the most valuable financial decisions you make in retirement. The Social Security Administration website and local Social Security office representatives can provide personalized guidance based on your specific situation.