Site icon

Here’s How to Get an Extra 24% Out of Your Social Security Check!

Here's How to Get an Extra 24% Out of Your Social Security Check

Increasing your benefit amount is easier than you would believe

Benefits from Social Security can go a long way toward ensuring a more pleasant retirement, so take advantage of them.

While your base benefit amount is determined by your earnings history over the course of your career, there is another element that can increase your benefit amount by up to 24%, and it is completely under your control.

How your age influences the amount of money you get in benefits

Aside from your earnings history, the age at which you file for Social Security has the greatest impact on the monthly amount you get.

To receive the entire benefit amount, you must wait until you reach full retirement age (FRA) before filing a claim. Your FRA is 67 if you were born in 1960 or after.

Your payments will be cut by up to 30% if you claim before your FRA (as early as age 62). If you wait until you’re 70 to start receiving benefits, you’ll get the full amount plus a 24% bonus each month.

Also, keep in mind that these changes are permanent. So, if you postpone benefits, you’ll keep getting higher checks for the rest of your life, regardless of how long you live.

Is deferring benefits the best option for you?

Delaying benefits may be the best option if your savings are running low or if you just want to earn as much money as possible each month in retirement.

Waiting to file could result in you receiving hundreds of dollars extra every month, depending on your benefit amount.

According to the Social Security Administration, the average monthly benefit amount in 2022 will be $1,657. Assume you have an FRA of 67 years old and file your claim at the age of 62.

In that case, your payments would be decreased by 30%, leaving you with a monthly income of about $1,160.

However, if you wait until you’re 70 to file, you’ll get your full benefit amount plus an extra 24%, or $2,055 per month, which is roughly $900 more per month than if you filed when you were 62.

When is it better to file a claim early?

Delaying Social Security is one of the most effective strategies to boost your monthly payouts, but it’s not for everyone.

If you lose your work or are otherwise pushed into early retirement, you may be better off filing for benefits sooner rather than later.

More Updates:

While you are not required to file for Social Security as soon as you retire, if you retire early but choose to delay benefits, you risk depleting your assets too rapidly.

Also, if you have cause to suspect you will live a shorter life than typical, filing early may be the best option. If you claim sooner rather than later, you may be able to receive more money over the course of your lifetime.

The age at which you begin collecting Social Security benefits is a personal choice that is based on your specific circumstances.

Understanding the benefits and drawbacks of both alternatives will help you determine whether claiming benefits early or later is the best option for you.

Exit mobile version