Some Millennials, Gen Z, and new United States citizens may still not know how Social Security retirement benefits work. Unlike popular belief, not everyone can receive monthly payments from Social Security.
First and foremost, you must work for at least 10 years in jobs covered by Social Security. Although this can allow you to get retirement benefits, they may be too low.
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So, the first top tip would be to work for a minimum of 35 years. In this way, you will have a much better payment in retirement. The more years you work for, the better. Since working for less than 35 years can reduce your monthly benefits.
THE MORE TAXES YOU PAY TO SOCIAL SECURITY, THE HIGHER YOUR RETIREMENT BENEFITS WILL BE
The second tip is to pay taxes to the Administration. If you do not pay any taxes to Social Security, you will not be eligible for retirement benefits. Some jobs do not pay tax to SSA, so be careful.
Thirdly, you’d better get well-paid jobs as soon as possible. If you have a high wage for 35 years, you can increase a lot your benefits. Some people do not get promoted or do not look for better-paid jobs because they have enough money now.
As a matter of fact, it is not about having enough money now. It is about increasing your future retirement benefits. Think about inflation, medical expenses, and possible unexpected events.
The more money you get as a retiree, the more pleasant your life will be. Bear in mind that the average Social Security retirement benefit is $1,907 in 2024 and some people get even less money.
FILE FOR SOCIAL SECURITY AT THE RIGHT AGE
Although no one could tell you what the right age to file is, you should reflect on it. Retirement benefits are much larger if you file at the age of 70. Therefore, that is the best age to file from a financial point of view.
Money is not everything, and health and quality of life can sometimes tip the scales in favor of early filing. Early retirement at 62 means getting 30% less, but it is true that you will get more payments as a retiree.
Full Retirement Age (FRA) is the best moment to file if you just want what is yours. This is when retirees get 100% of their Social Security benefits. FRA is 67 if you were born in 1960 or later. Last but not least, ask for help if you need a financial advisor.
If you do not have enough money to hire one, talk to seniors in retirement to learn from their personal experiences. Earning the taxable maximum for 35 years in jobs covered by Social Security and filing at 70 can qualify you for the largest check, $4,873 in 2024.