At such a time of retirement, an individual needs to maximize his/her Social Security Benefits.
Effective plans can increase one’s monthly paychecks, enhancing financial security into old age significantly.
Delay Taking Social Security Benefit
The very best way one can increase income from Social Security is by postponing the onset of taking its benefits.
While you are eligible to begin receiving benefits at age 62, waiting longer to apply will increase the amount of your monthly benefit.
Every year past your full retirement age that you delay until age 70 increases your benefit. This may give you a huge increase in your monthly income, at retirement.
Consider Working Longer or Part-Time
Even if you only work part-time, you can extend your working years and positively impact your Social Security benefits.
Additional years of earnings may replace lower-earning years in your benefit calculation, potentially increasing your AIM.
A higher AIME means a higher PIA, which determines your benefit. Additionally, the longer you continue to work, the later you can start receiving benefits, thereby maximizing your monthly Social Security income.
| Age | Full Retirement Age (FRA) | Benefit Reduction at 62 | Benefit Increase at 70 | Annual Increase Rate |
|---|---|---|---|---|
| 66 | 66 | 25% | 32% | 8% |
| 67 | 67 | 30% | 24% | 8% |
| 68 | 67 | 30% | 16% | 8% |
| 69 | 67 | 30% | 8% | 8% |
By using these plans, retirees will be able to increase their Social Security benefits immensely, thereby bringing them a safe and comfortable retirement.
These game-changing moves can lead to a more comfortable and financially secure retirement. Always consult with a financial advisor to tailor your Social Security strategy to your specific situation and make the most of the benefits you’ve earned. Proper planning today will pay off in the long run.
FAQS:
What is the full retirement age (FRA)?
The full retirement age is the age at which you are entitled to receive your full Social Security retirement benefit. It varies depending on your birth year, ranging from 66 to 67 for most current retirees.
How much can I increase my benefits by delaying retirement?
For every year you delay taking Social Security until after your full retirement age, until you are 70, your monthly benefit will rise approximately 8%. That means you’ll increase your monthly benefit a whopping 32% by going from 66 to 70.
Does working longer impact my Social Security benefits?
Yes. If you work while drawing your Social Security, it will likely boost your monthly check.
Can I work and receive Social Security benefits at the same time?
Yes, you can work while receiving Social Security benefits. However, if you are below your full retirement age and earn above a certain threshold, your benefits may be temporarily reduced