Many American workers may think it is hard to raise the amount of Social Security retirement they get, but there is an easy thing they can do that can make a big difference in their monthly checks.
Most of the time, people choose to apply for benefits at age 62, which is the earliest age possible. Even though this might seem like a good idea, it can lead to a big drop in the monthly payment.
Actually, putting off retirement might be the best way to get a much bigger monthly check. If someone retires at age 62, they might get $1,600 a month. If they wait until they reach full retirement age, which is usually 67, they could get $2,000 a month. This raise means a lot more money in your pocket, which can make your retirement better.
The Simple Step to Increasing Retirement
If you want to get a bigger monthly Social Security check when you retire, you should wait to apply for benefits. You can start getting Social Security payments as early as age 62, but the amount will be permanently less if you do so at this age.
This drop can be as much as 30% of the full benefit. Over the years, this is a big loss that can have a direct effect on the standard of living of an American retiree.
On the other hand, it might be smart to wait until you reach full retirement age. Most people will have to wait until they are 67 years old. Because of this wait, we will get all of the benefit that was given. It is also possible to delay retirement even longer, up to age 70.
If this happens, the monthly amount goes up even more because the Social Security Administration gives extra credits for each year of delay.
For example, a worker who could get $1,600 a month if he retires at age 62 could get $2,000 a month if he waits until age 67. This raise not only makes your retirement finances more stable, but it also gives you more peace of mind in case you have to pay for something unexpected.
Still, every case is different, and it is a good idea to look at our work history and think about what would be best for us in the long run before making a choice.
Other factors that influence Social Security
Putting off retirement is a key way to get the most out of the benefit, but there are other important factors that also affect the final amount of the Social Security check. When workers think about these things, they can make better decisions and get the most money possible.
- Years worked: The Social Security Administration calculates the benefit based on the highest 35 years of earnings. If a worker has not accumulated 35 years of work, the missing years are counted as zero, which reduces the average and, therefore, the monthly amount.
- Earned income: The higher the salary during the working life, the higher the Social Security benefit. This is because payments are calculated based on average earnings during the 35 most productive years.
It is important to think about these two things to make sure that the monthly Social Security check is as high as it can be. In this case, having a solid, well-paying job history and delaying retirement age can mean the difference between a tight retirement and a more comfortable and safe one.
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