Using these tips, you can get an additional 24% out of your Social Security benefits.
By making one simple decision, you can significantly increase your standard Social Security benefit.
Most American seniors rely on Social Security benefits as a major source of income because they are guaranteed for life, they are protected from inflation, and they are based on the amount of time they have worked.
You can avoid financial difficulties in the future by making the most of this source of income. You can increase your income by making one simple decision, and that’s good news for everyone!
Here’s how to increase your monthly Social Security benefit by 24 percent.
Most future retirees can increase their retirement income by 24% compared to their standard benefit, which is good news if you’re hoping to get the highest possible Social Security check.
You must first understand how your standard benefit works in order to figure out how to make this happen. Inflation-adjusted average wages earned over the 35 years of your highest salary qualify you for this benefit.
After reaching your full retirement age, you must apply for your first Social Security check to be paid out (FRA). Depending on the year you were born, FRA can range anywhere from 66 months to 67 years old.
However, you don’t have to be satisfied with the benefits that are offered on a regular basis. Waiting until after your full retirement age (FRA) is the best way to increase your benefits. For the 24 percent increase, you’ll have to wait a total of three years beyond FRA.
Waiting until you’ve reached full retirement age increases the amount of money you receive.
How can you increase your retirement benefit by 24% by waiting to receive your monthly payments? It’s easy to see why.
Social Security was designed to allow you to receive retirement income at a time that is convenient for you. Even though you’re only 62, you can begin receiving monthly pension payments. Early filing penalties reduce your payments so that you receive more checks over your lifetime, but each one is smaller.
On the other hand, you can choose to wait until you reach full retirement age before claiming benefits. By delaying your retirement, you’ll accrue more delayed retirement credits, resulting in higher monthly payments.
When you finally file for benefits, you should be able to catch up on lifetime payments with those who filed earlier thanks to the higher monthly payment you will receive. It doesn’t matter when you begin receiving payments under this system.
No matter when you applied for your first Social Security check, if you live up to your projected life expectancy, you should receive about the same amount of money in benefits.
Beneficiaries whose applications are delayed will see their payments increase by 2/3 of 1 percent per month. Calculations show that this represents an annual increase in benefits of 8%. Because of this, delayed retirement credits cannot be earned until the age of 70. Waiting longer for Social Security benefits is not rewarded after that.
To put it another way, at 70 you’d have raised your standard benefit by 24 percent by delaying your retirement by two-thirds of a percentage point per month. When it comes to Social Security, this option would give you an additional 24% of your retirement income.
Think about whether or not you’ll live long enough to break even on a benefit delay, or whether you’ll live long enough to be better off. To get an extra 24% from your benefits, you’ll need careful consideration of your health status and family health history to see if it’s worth it.