Social Security benefits currently represent 38% of the income of most retirees 1. With more than 10,000 baby boomers retiring every day, wise retirees will maximize their benefits by understanding the following ways to make the most of the money from your taxes.

1. Get benefits at your full retirement age

Did you know that 69% of retirees get their benefits before full retirement age? According to a 2012 LIMRA study, more than two-thirds of retirees receive less income than is available to them.

This mistake could cost you a 25% reduction in lifetime benefits! If you apply before your full retirement age, for most people this is the age of 66, you will never receive 100% of the benefits you paid.

Don’t follow the pack on this simple decision. Delay receiving benefits until at least your full retirement age.

2. Better yet, wait until age 70 before applying.

How would you like a 32% increase in retirement income? What if that income was adjusted for inflation for life? If it sounds too good to be true, don’t worry, I’m not trying to sell you an annuity.

By delaying benefits beyond your full retirement age, you could increase benefits by 8% per year for a maximum increase of 32% at age 70.

The increase is adjusted by simple interest, however, this increased amount is the basis for all future cost of living adjustments (COLA). That means you will not only enjoy more income, but you will also increase more each year due to your higher base.

3. Accept spousal benefits

Spousal benefits are often overlooked as a way to increase retirement income. If you’ve been married for more than 12 months (or got divorced after 10 years of marriage), you may qualify for spousal benefits.

As a spouse, you are entitled to 50% of your husband or wife’s benefit. You can receive these benefits as soon as you or your spouse have reached full retirement age.

These benefits are often used to add family income and delay the filing of your personal benefits. Before applying for personal benefits, consult with your advisor about strategies that could allow you or your spouse to collect spousal benefits, especially if you have been divorced.

4. Reduce taxes

Did you know that if you and your spouse have a combined income of more than $ 32,000 during retirement, then 50% of your Social Security benefits are taxable? Worse yet, if your combined income exceeds $ 44,000 per year, 85% of your benefits are taxable.

That means up to 85% of your profits can be taxed as ordinary income! You may owe taxes at the federal level AND at the state level, depending on your state of residence. Currently, 27 states are totally exempt from taxes on Social Security benefits and the others have different levels of taxes, mainly based on income.

The easiest way to minimize income taxes is to limit your ordinary income. Distributions from your IRA or 401k will increase your ordinary income, so you’ll want to work with a specialist to help you coordinate withdrawals.

5. Work after age 60

Your Primary Insurance Amount (PIA) is the amount of benefits you will receive at full retirement age. Your PIA is based on your Average Indexed Monthly Income (AIME).

To calculate your AIME, Social Security looks at your covered income each year from you started working through age 60. They then form a special average of this income (AIME) and use this figure to determine your full retirement benefit (PIA).

Your AIME is based on the highest income of your 35 years. If you had no earnings in a particular year, a 0 will be placed in that year. By now, you may be wondering “what about inflation?”

Well, Social Security uses indexation to match the value of wages earned earlier in life to be credited proportionally to the lifetime earnings on which your Social Security benefits are based.

The good news is that the Social Security Administration stops indexing income at age 60. Therefore, when working beyond 60, your income is likely to be included in the 35 highest earning years and therefore may increase your PIA.

There you have it: 5 strategies you can use to increase your Social Security Income. This article could have easily been 10 pages or more if you had included all the warnings and “what ifs”, so be sure to consult with an advisor before applying.

1 Social Security Administration, Social Security Fast Facts, 2014, http://ssa.gov/news/press/basicfact.html