Retirement benefits can be larger or smaller depending on when you apply for Social Security. Apart from having a close look at the expenses as a retiree before filing, there are other important aspects to take into account.
For example, if a worker applies for retirement benefits at the age of 62, this worker cannot receive 100 percent of the benefits. Therefore, this worker is getting less money per month.
On the contrary, many people argue that it is best to claim early to get more payments. It is up to you to decide, but make sure you can make ends meet. Inflation can drain your savings in less time than you think.
WHY SHOULD YOU FILE AT FULL RETIREMENT AGE?
The Social Security Administration can only pay you 100 percent of the benefits you are entitled to if you file at Full Retirement Age. That is why you should file at this age if you want to get what is yours. But when do you reach that age?
The Full Retirement Age (FRA) varies from one person to another. It depends on the date of your birth. For example, if you were born in 1960 or later, your FRA is 67.
This age has recently increased, and most seniors reached the Full Retirement Age at 65. As people tend to have a longer lifespan, the Social Security Administration needs to update it.
Otherwise, the system may not be sustainable and it could collapse. If there are more retirees than workers, it is not possible to fund the system. But who can get $3,822 at FRA in 2024?
CHECK WORTH $3,822 IN 2024 AND ELIGIBILITY
For your information, the average Social Security retirement check is worth $1,907 in 2024. After the latest COLA boost, retirees can take advantage of the extra 59 dollars they get every month.
However, very few American workers can get $3,822 in retirement. This is because this large check is only for very high earners over time. So, if you have not been a high earner for many years, you do not qualify for this amount.
What is more, it is not possible to get it unless you meet the three requirements. It is not enough to have earned a lot of money for many years. So, let’s sum up the 3 conditions SSA set.
The check worth $3,822 is only for workers who have earned the taxable maximum for 35 years and filed at Full Retirement Age in 2024. Keep in mind that it could become $4,873 if you filed at the age of 70.