Social Security, How to increase your retirement income by $654 a month

Are you gearing up for retirement and wondering how to boost your Social Security benefits? If you’re looking for ways to increase your monthly checks, you’re not alone. Many retirees feel the pinch of inflation and rising living costs, and a larger Social Security payment can make a big difference. Let’s get into how you can potentially add an extra $654 to your monthly retirement income.

The Basics of Social Security

The program called Social Security is made to aid older people with money, people who are disabled, and people whose husbands or wives have passed away. It is determined by what you have earned throughout your life and at which point you start taking advantage of it.

Early vs. Full Retirement Age

Most people can begin collecting Social Security benefits at age 62. However, if you start taking benefits early, your monthly payments will be reduced. On the flip side, if you wait until your full retirement age or even later, you could receive higher monthly payments. For those born in 1960 or later, the FRA is 67.

The Difference in Monthly Payments

If you decide to claim Social Security benefits at age 62, you could receive significantly less compared to waiting until your FRA. For example, if your estimated monthly benefit at age 62 is $1,465, waiting until age 67 could boost that amount by $654 per month. This means you’d be getting around $2,119 per month if you wait.

Why Waiting Pays Off

Each year you delay claiming benefits beyond your FRA, your benefits increase by about 8% per year until you reach age 70. This can make a substantial difference in your monthly income. So, if you can afford to wait and are in good health, it might be worth it to hold off on claiming benefits until you’re older.

How to access Your Social Security Statement

In order to view a personal estimate of your benefits, you must access your Social Security Statement. The online process is fast and straightforward. Go to the website of the Social Security Administration and sign up for a “my Social Security” account. Once registered, simply login and then download your statement for a better perspective on what you could receive as benefits.

Tips to Maximize Your Benefits

Work for At Least 35 Years

Your Social Security benefits are based on your highest 35 years of earnings. If you have fewer than 35 years of work history, the SSA will include zeroes for the missing years, which can lower your benefit amount. So, aim to work and earn for at least 35 years.

Ensure Your Jobs Are Covered by Social Security

Make sure all your work history is covered by Social Security. If you’ve worked in jobs that weren’t covered, this could affect your benefits. Verify that your employer has been paying the correct amount of Social Security taxes.

Verify Your Work History

Errors in your work history can impact your benefits. Regularly check your Social Security Statement to ensure all your earnings are correctly recorded. Any discrepancies should be reported to the SSA.

Delay Retirement If Possible

If you’re in good health, enjoy your job, and can afford to wait, consider delaying your retirement until age 70. This will maximize your benefits and provide you with a larger monthly check.

Plan for Your Full Retirement Age

Planning to retire at your FRA can significantly increase your benefits. It’s a sweet spot where you receive your full benefit amount without any reductions.

Conclusion

Maximizing your Social Security benefits involves understanding how your filing age affects your monthly payments and taking steps to ensure your earnings record is accurate. Wait until you reach full retirement age or longer to potentially increase your benefits by up to $654 per month by working at least 35 years and ensuring all jobs were covered by Social Security. This will result in a better retirement when planned accordingly.

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