Retirement is something you should plan in advance. However, there are many workers that are in their 50s and still have not done much about it. If you neglect your savings, investments, and planning, you will regret it.
No one expected such high inflation in 2022 and 2023. As a consequence, many Americans in retirement have difficulties in making ends meet. That is why you should know when it is best to retire and if you can really afford it.
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Early retirement at 62 sounds great but it implies getting a 30% reduction. On the contrary, if you file at the age of 70, you can get 24% extra per month from Social Security.
HOW MUCH COULD I GET FROM SOCIAL SECURITY IN RETIREMENT IN 2024?
There is not a fixed amount of money for all retirees in 2024. However, there are both maximum amounts and average payments. The maximum amount a retiree can get in 2024 is up to $4,873.
To get such a large payment from Social Security you must meet 4 conditions. First, you must pay taxes to SSA as you work. Secondly, you must have worked for 35 years.
That is the number of years SSA uses to calculate your retirement benefits. The good thing is that Social Security only uses the years with the highest earnings. So if you worked for 40 years, SSA will only take the best ones.
Thirdly, you must file at the age of 70. Otherwise, you will not get up to $4,873. The last thing is earning the taxable maximum for 35 years. Bear in mind that it is $168,600 in 2024, so very few can achieve it.
RETIREES & THE AVERAGE PAYMENTS IN 2024
The Social Security Administration updates average payments every month. As of December 2023, the average payment was $1,848. After the 2024 COLA increase, payments are higher.
For your information, all retirement benefits have increased by about 59 dollars on average. That means retirees get about $1,907 in 2024. It is true that it is more realistic than maximum amounts.
The truth is that many workers get a lower retirement benefit. That is why they must apply for Supplemental Security Income to get extra money. Others also need to send applications for SNAP benefits (Food Stamps).
If you would like to know a more accurate retirement benefit amount, get your Social Security annual Statement. There you will find more information about possible amounts at different ages and many more useful things.