Today when inflation & job loss is rising at a much faster pace, millions of Americans are finding it hard to live on a fixed income.
That’s when collecting timely social security checks can help them pay the bills.
Even though this year we’ll see a 5.9 percent increase in the COLA benefits, it’s just a matter of time, the U.S. inflation at 7percent cancels it out.
In the meanwhile, if you’ve thought of retiring, there are some programs you can avail for your benefit. However, the way you claim these benefits mostly depends on how you claim them. So, to make sure you choose the right benefit, I’ll list certain types of benefits you can avail of in 2022. Let’s get started:
SSI, or Supplemental Security Income
SSI is intended to help provide income for those who have little or no income. It’s designed to help fill in the gap if you’re still working, but not currently making enough money to support yourself. This benefit program has been around since the mid-1970s and is funded through payroll taxes.
The lump-sum payment is paid out when you are both disabled or retired. If you’re over the age of 62, and you’re claiming your disability benefit, then you’ll receive this lump-sum payment to help with your expenses until your retirement benefit is approved. This is also called a back payment (not to be confused with back pay).M
The lump-sum is not taxable if you have other income that’s greater than $34,000 (the threshold in 2017). If it’s not taxable, then it could be a good idea to use it to pay off debt, or cover living expenses while you’re receiving your monthly retirement benefit payments.
If you choose to use this money for living expenses, keep in mind that it will be taxed as income when it comes in. Here’s more about the difference between taxable and tax-free Social Security payments.
Full Retirement Age benefits
Don’t avail of retirement age benefits before you reach your full retirement age. Before that you’ll lose out on the full retirement benefits you’re entitled to receive at the age of 70.
In short, if you avail of the retirement benefits right after you are 62, you’ll lose out on benefits of up 30 percent. On the other hand, if you wait until you reach the age of 70, you’ll get the maximum retirement age benefits with By waiting until 70, you can see an increase by aro8 percent of increase every year.