The Social Security Administration (SSA) makes sure that workers meet all the requirements to get payments in retirement. However, those who simply meet the basic requirements may get a really low check every month.
That is why it is of vital importance to know how everything works. In this way, you will be able to get a larger Social Security payment. First of all, working for just ten years allows to to get benefits, but it will not be enough money.
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Therefore, it is advisable to work for at least 35 years. That is the number of years Social Security uses to calculate the amount of your retirement benefits. Not doing so means reducing your monthly check. After this bonus tip, let’s have a look at another bonus tip.
THE HIGHER YOUR WAGE, THE HIGHER YOUR SOCIAL SECURITY WILL BE
Many workers only think about the present. It is fine to do so, but this can affect your future Social Security retirement benefits. Bear in mind that the largest retirement benefit is for those who earn the taxable maximum for many years.
The taxable maximum is the contribution and benefit base. It usually increases annually, just like inflation does. In 2023, the taxable maximum was $160,200 and it is currently $168,600.
As a matter of fact, if you have managed to earn the taxable maximum for 35 years, you can have a chance to get up to $4,873 in 2024. Keep in mind that this tip is helpful even if you have not earned so much money.
The thing you must take into account is the fact that you need well-paid jobs. If it is not possible either, you must try to look for ways to promote in your company or to get another job. The more tax you pay to Social Security, the better.
DELAY RETIREMENT TO GET A 24% REWARD FROM SSA
Early retirement means getting a reduction of about 30%. Can you really afford to say no to thousands of dollars every year? Many workers think they do but they end up regretting it.
This is mainly because they do not take into consideration inflation and hidden costs and expenses like health care. For example, if you are entitled to a Social Security check worth $1,465 at 62, you could get $2,634 at the age of 70.
Hence, if you follow this advice, you can get a Social Security reward of approximately 24%. It is at Full Retirement Age when you can get 100% of your benefits.
Thus, if you delay it until you are 70, you can get a lot more. Between filing at 62 or at 70 there is a big difference. Do not forget that you can cash 1,169 dollars extra per month following the previous example amounts.