As a result of inflation, Social Security benefits have shrunk for the average American.
During the past year alone, prices have gone up 6% overall.
Put it this way: Prices shot up in almost every major category in less than a year after inflation remained near zero for the better part of the last decade.
In some categories of groceries, prices have increased upwards by 12%, which is particularly harsh on senior citizens living on fixed incomes.
A cost-of-living adjustment of 5.9% was stimulated to help alleviate this problem.
There are some tried-and-true strategies to boost your income if, like millions of Americans, you are still in need.
The Big Bonus: Delay in Retiring Credits
The timing of your Social Security benefit is one of the most important factors.
Social Security benefits can be filed as early as age 62 and as late as age 70, GoBankingRates reported.
Taking benefits early will reduce your gains; waiting until you turn 70 will increase them.
You could almost double your monthly benefits, depending on the number of your benefits and the age you begin distributions.
You may be able to utilize delayed retirement credits if you wait.
Social Security gives you a certain delayed retirement credit if you delay taking your retirement benefit, AARP disclosed.
The credits start accruing when you reach full retirement age.
If you wait until age 70 to file for Social Security, your benefit increases by about two-thirds of 1% for each month you wait.
The result is that retirees who reach full retirement age at 67 but do not claim until 70 will receive an additional 24% of their monthly benefits.
While you can accrue credits up to the age of 69, they are reversed if you decide to take early retirement benefits.
SSA states that “if a worker begins receiving benefits before his/her normal or full retirement age, the worker will receive a reduced benefit.”
It adds that a worker can choose to retire as early as age 62, but doing so may result in a reduction of as much as 30%.
With average benefits at $1,500, you could get a check of $1,050 if you retire at 62.
But, if you wait until 70, you will receive approximately $1,888, that’s a 8% annual accrual after assuming full retirement age.
