The phrase refers to a potential increase in Social Security benefits that some individuals may be eligible to receive. This supplemental income is not a standard or guaranteed bonus for all recipients but rather represents the maximum possible increase achievable through strategic claiming decisions and maximizing lifetime earnings subject to Social Security taxes. An individual’s specific circumstances, such as work history, earnings record, and claiming age, determine the actual amount, if any, of this potential increase.
Understanding this aspect of Social Security is important for retirement planning. Deferring Social Security benefits beyond the full retirement age (FRA) results in a delayed retirement credit, increasing the monthly benefit amount. The specific dollar amount mentioned highlights the potential financial advantages of carefully considering the optimal claiming strategy. Moreover, it emphasizes the impact of consistent earnings throughout one’s working life on the ultimate Social Security benefit received. The Social Security system was established to provide a safety net for retirees, and maximizing benefits within the system’s guidelines is a prudent financial strategy.
