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Whether you are launching your golden years with a modest amount of savings or no savings at all, you will want to make the most of Social Security. These simple steps will help you increase your benefits and have a higher retirement income for life.
1. Work at least 35 years
Your social security benefits are based on your highest paid 35-year salary. But not everyone works 35 years. Some people take time to raise their children. Others leave the labor market to travel, care for loved ones or recover from injuries or illnesses. If you do not have 35 years of work to your credit, extending your career could give a boost to your benefits. In doing so, you will replace the $ 0 you would otherwise have in your benefit equation for each year with no income on a real salary, which would increase your average salary over that 35-year period.
Source of the image: Getty Images.
In addition, it is often profitable to work more under 35 if your goal is to grow your profits. The reason? If you make more money later in your life than earlier in your career, you can replace some years with lower earnings with higher earnings, increasing your average salary and thus increasing the total amount of your benefits.
2. Delay benefits after your retirement age
Although your social security benefits are based on your employment history, you can not claim them in full until you reach the retirement age. Depending on your year of birth, this age is 66, 67 or somewhere in between.
Keep in mind that the Social Security Administration will allow you to take benefits as early as age 62, but doing so will reduce them. At the same time, you can also defer benefits beyond the age of retirement and increase them by 8% per year until age 70. This means that if you are entitled to $ 1,500 a month at the age of 67, wait 70 years. to receive your benefits, you will earn $ 1,860 a month – for life.
3. Increase your professional skills to win an increase
Your social security benefits are based on your income. As a result, the higher your incomes, the higher they are. That is why it is helpful to develop your skills to become the most valuable employee possible. In doing so, you will be more likely to hang on to merit – based increases that will not only allow you to put more money in your pockets year – to – year, but will also increase your security benefits. during retirement.
How could you improve on the skills front? On the one hand, you can be certified in a specific area of your field, whether it's information technology, project management or training. You can also improve your general skills (communication, problem solving and organization).
Maybe social security will be your main source of income in retirement. Or maybe it only represents a fraction of your total income. Whatever the case may be, you have contributed to the system throughout your career and so you deserve to enjoy these benefits now that you are older. Take these steps and you will receive a higher payment from Social Security throughout your retirement.
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