Could you use $100,000 in extra Social Security benefits? Where to find it

(BPT) - Did you know there are more than 8,000 ways a married couple can file for Social Security benefits?

With all those thousands of options, knowing how to pick the right strategy for your household could result in $100,000 or more in additional retirement income, according to a recent survey from independent investment advisor Financial Engines.

Most Americans overestimate their ability to make good decisions on when to claim Social Security, according to the survey. They also underestimate the complexity of making those decisions. Plus, 22 percent of married couples and about 47 percent of unmarried people rely on Social Security for 90 percent or more of their retirement income, according to the Social Security Administration. So deciding when to claim Social Security benefits can be one of the most important planning decisions you can make.

While it’s complicated, it doesn’t have to be scary. Here are Financial Engines’ top five tips to help you make the most of claiming Social Security benefits and maximizing your income in retirement:

1. It pays to delay (claiming). While you can start collecting your earned Social Security benefits as early as age 62, you’ll generally get higher payments if you wait. For every year you wait, until as late as age 70, your payments will increase by 6 to 8 percent – guaranteed by the government, under current conditions. If you delay claiming from age 62 to 70, that can result in about 75 percent more money in your pocket each month.

2. Decide as a couple. If you are married, add “claiming Social Security” to the list of things you and your spouse should do together. By approaching the decision as a household and making the most of spousal benefits, you can maximize expected lifetime benefits for the two of you. And while it’s not pleasant to think about, you can also help plan a more financially secure future for the one who outlives the other.

3. Worry more about living long than dying young - especially if you’re female. No one knows when they are going to die, and that’s one reason why retirement planning is so challenging. A man reaching age 65 today can expect to live, on average, to age 84, according to the Social Security Administration. A woman who reaches age 65 today can expect to live until age 86 (on average). Even so, one spouse will likely outlive the other by an average of 11 years, so planning for the survivor is extra important.

4. Consider tapping your retirement accounts to help defer claiming. The bottom line is that delaying Social Security looks like one of the best deals going. Tapping your other retirement accounts to make delaying possible could make smart financial sense. Remember that Social Security will adjust for inflation every year to help you keep up with rising costs.

5. If divorced, you may be eligible for more than you think. While your marriage may not have lasted, you may receive benefits based on your ex-spouse’s work history if you were married at least 10 years and you are unmarried at the time you file for Social Security. But if you have remarried, you usually can’t receive benefits on your ex-spouse’s record.

If you’re starting to think about retirement, considering your Social Security benefit claiming options now could help you experience the best of your Golden Years. Want to learn more? Test your knowledge about claiming Social Security with a fun online quiz and try Financial Engines’ Social Security planner, which is available at no cost, at financialengines.com.