More than 71 Americans rely on Social Security or SSI payments. Needless to say, more retirees rely on retirement benefits because they have not been able to save or invest as much as they would have liked to.
Others have made a big mistake by filing too early and they can do nothing about it now. Before regretting it, make sure the way Social Security works. In this way, you can decide when is the right and best time to get monthly checks.
While some claim that filing at 62 is the best thing, others believe that getting Social Security at 70 is just perfect. No one can be in your shoes, so be informed to make the right choice and get as much money as possible.
SOCIAL SECURITY TIPS TO GET MORE MONEY IN RETIREMENT
As soon as you start working, you should make sure that your employer is paying the right amount of taxes. Sometimes they can make mistakes and you will end up paying less tax. This could affect your future payments, so download your annual Social Security statement to see that everything is fine.
Once you know that you are paying the right amount of taxes for the work you do, make sure you get well-paid jobs. If your job does not give you a high salary, try to promote or look for alternatives.
Those workers who get lower wages will receive lower Social Security payments too. Therefore, it is not an option, it is a must to get more money as you work. But these two tips are not enough.
The number of years people work is also essential. To get Social Security you will need to have worked for at least ten years and earned 40 credits. Work credits can be earned as you pay taxes. For $1,640 ($1,730 in 2024) of earnings, you can get 4 credits in 2023. That is the maximum number you can get in one year.
WORK FOR 35 YEARS AND DELAY RETIREMENT TO INCREASE RETIREMENT BENEFITS
Workers who do not work for 35 years will get a reduction in their Social Security retirement benefits. Hence, it is of vital importance that you work for at least 35 years.
Sometimes you may want to work longer because to earn the maximum benefits ($4,555 in 2023), you must have earned the taxable maximum ($160,200 in 2023) for 35 years. If you had a few years of low wages, you can make up for them working longer.
Social Security will only choose the top earnings years up to 35. The age to retire is crucial too. Early retirement at 62 means getting 30% less per month. Not everyone can afford it.
So, if you want to get 100% of your Social Security file at Full Retirement Age. File at 70 if you want a 24% extra per month. Appart from that, you’d better save money and make contributions to your 401(k) plans. Investing wisely can also make your retirement a peaceful time.