There’s an easy way to get 24% more Social Security in retirement. Here’s the trick.

The average American between the ages of 65 and 74 had about $609,000 in retirement savings as of 2022, according to data from the Federal Reserve. But the average retirement account balance for that age group was just $200,000.

This tells us that the latter number — $200,000 — is more representative of the savings of older Americans than $609,000. It also tells us that a lot of retirees could probably use an increase in their Social Security benefits to make up for limited savings.

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If this is the boat you’re in or expect to be in, you may be eager to get more money from Social Security. The good news is that there is a fairly easy way to guarantee a higher monthly benefit for life. But you will need to make sure that this specific strategy works for you.

The wait could really pay off

You are entitled to your full monthly Social Security benefit, based on your individual earnings history, when you reach full retirement age. This age depends on the year of birth and is 67 for anyone born in 1960 or later.

However, the Social Security Administration will reward you with an 8% increase in your monthly benefit for each year you delay your claim past retirement age. While that incentive runs out at age 70, if your full retirement age is 67, you have the opportunity to increase your monthly checks by 24% — for life.

It is a fantastic business because there are few opportunities that allow you to earn 8% of your money every year without taking any risk. Buying stocks, for example, might produce a similar return, but you’ll also risk losing money in the event of a market downturn. By postponing your Social Security claim after full retirement age, you are guaranteed an 8% annual boost.

Make sure a delayed deposit works for you

If you’re nearing retirement and don’t trust the amount of money you’ve saved so far, it might be a great idea to delay your Social Security claim for a larger benefit each month. But before you decide to file for Social Security at age 70 for a 24 percent boost, consider your health and family history.

Claiming Social Security at age 70 or some other point after full retirement age could result in higher payments each month. But it won’t guarantee a bigger one lifetime Social security payment day.

Remember, a late filing means missing out on months or years of benefits. If you end up living into your 80s or 90s, a Social Security claim at age 70 could easily result in a higher lifetime income than a deposit at full retirement age. But if you die in your mid-70s, you’ll generally reduce your lifetime Social Security earnings by delaying filing until age 70.

That’s why you need to consider your health and family history when making your choice. Deferring Social Security is an easy way to get more money from the program each month, but getting your money earlier might be a better choice financially.

If your health is average at full retirement age and your parents lived long lives, there’s nothing wrong with putting off claiming Social Security for a few years. But you may not want to do this if you already have health problems and your parents died in their 70s.