If you are already in your 60s, you must be wondering when to file for Social Security retirement benefits. Undoubtedly, the money it can provide you with will be essential once you stop working.
However, not all the seniors who apply for retirement benefits plan it properly. Especially, those seniors who cannot afford all the expenses they come across as retirees.
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As a matter of fact, millions of American workers dream of early retirement. What many workers ignore is the fact that filing at 62 means getting a 30% less every month. But can you really afford it with such high inflation?
HOW CAN SOMEONE GET $4,873 FROM SOCIAL SECURITY IN RETIREMENT?
The Social Security Administration recently announced that the largest payment for a person aged 70 in 2024 is $4,873. In order to get it, you must meet three conditions. The first one is to file at the age of 70. But why?
Social Security gives a 24% reward to those workers who file for retirement benefits at the age of 70. That is about 8% extra per year after Full Retirement Age. It is definitely positive from a financial point of view.
However, not everyone is fit and healthy to continue working until they are 70. Filing for retirement at 62 could be a great choice if you are unemployed and cannot find a job, you are in poor health or you have saved more than enough.
Having a large nest egg can give you peace of mind. But fewer workers manage to do so. Moving on to the second requirement to get $4,873 in 2024, you must work for at least 35 years.
FILE AT 70 AND WORK FOR 35 YEARS
If you have not worked for 35 years when you apply for Social Security, you will get a reduction in your monthly payments. This is the exact number of years SSA uses to calculate your payment amount.
So, make sure you work for at least 35 years before getting retirement benefits. The last requirement is not so easy to achieve. That is why so few retirees qualify for checks worth $4,873 in 2024.
The thing is a worker must have earned the taxable maximum for 35 years too. The taxable maximum is the contribution and benefit base. It is $168,600 in 2024, up from $160,200.
Summing up, if you have earned for 35 years the taxable maximum and file at the age of 70 in 2024, you qualify for a payment worth $4,873. It was $4,555 in 2023, so there has been a nice increase after the COLA boost.