The Social Security Administration has an endless list of rules. However, there are three simple tips that can allow you to get more before you file for retirement benefits. Getting more money as a retiree will be essential to supplement your pension, savings, and investments.
The first thing every worker should know is that their salary matters. Some people only think about earning enough money for the present. But then, you are not paying much tax to the Social Security Administration. So, this can reduce the amount of your monthly payments in retirement.
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Therefore, it is of the utmost importance to look for well-paid jobs so that your contribution and benefit base are as high as possible. Remember that your goal should be the taxable maximum every year. In 2023 it is $160,200, and it will become $168,600 said Social Security.
GET WELL-PAID JOBS
Even if you cannot get the taxable maximum, it is important to get promoted and look for better-paid jobs. The higher your salaries are the better. In this way, you will increase your future Social Security retirement benefits. Secondly, you should know that it is crucial to delay retirement. But how long?
From a financial point of view, the best thing to do is to delay retirement until you are 70 years old. Remember that if you are 62 and you file at that age, you will lose thousands of dollars. Social Security can reduce your payment 30% per month.
That is such a large bite that it could be devastating for many retirees. If you cannot wait till you are 70 to file for Social Security benefits, opt for something in between. For example, many retirees prefer to file for retirement when they reach their Full Retirement Age.
Full Retirement Age is not the same for all American workers. It will depend on the year you were born. For instance, if the year of your birth date is 1960 or later, your Full Retirement Age is 67. That will be the age when you can get 100% of your Social Security benefits.
GET A 24% REWARD FROM SOCIAL SECURITY IN RETIREMENT
Instead of collecting 100% of your benefits, you could file at the age of 70 to get 24% extra per month. Of course, do not wait that long if you are in poor health or your job is too tough or demanding. Well-being is also something to take into account when filing for Social Security.
The third thing you should take into consideration is the number if years you work. If you do not work for at least 10 years, you will not qualify for Social Security. In ten years, you must get at least 40 work credits.
Nevertheless, this may not be enough. It is always advisable to work for a minimum of 35 years. By doing so, Social Security will not reduce your monthly retirement checks. Those who have earned the taxable maximum for 35 years and file at 70 in 2024 will get a check worth $4,873.