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If you do not already receive regular Social Security payments, you will probably do it someday and if you want to be smart about it by collecting as much as you can, do not just leave it to chance.
The income you receive from social security is not static: you can take steps and make decisions today that will determine the size of your benefit checks. Here are three smart social security moves you should make.
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<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "# 1: Do not rely on Social Security to support you"data-reactid =" 25 "># 1: Do not rely on Social Security to support you
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To begin, do not assume that social security will suffice, or almost, to help you retire.The program was & nbsp;designed to replace about 40% pre-retirement income, although this percentage varies somewhat with your level of income. "data-reactid =" 26 "> To begin with, do not assume that social security will be enough to support you. The program was designed to replace about 40% of pre-retirement income, although this percentage varies slightly by depending on your income level.
<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Despite the purpose of social security to be As a supplement to savings, since many Americans retire with much less money than they need, social security is becoming an extremely important source of income for many.90% at least 50% of program income, while 48% of married Social Security recipients and 69% of unmarried persons derive 50% or more of their income. "data-reactid =" 27 "> Despite the goal of Social Security As a supplement to savings, since many Americans retire with much less money than necessary, social security has become a source extremely important income for many.According to the Social Security Administration (SSA), 21% of elderly recipients of social security married and 44% single people get 90% or more of their income from the program, while 48% of married elderly Social Security recipients and 69% of single people get 50% or more of their income.
So, what exactly can you expect? Well, the average monthly Social Security retirement benefit recently was $ 1,467, or about $ 17,600 a year, but you'll reap more if your income history puts you above the average. . Nevertheless, it will not be a princely sum: the maximum monthly benefit for those retiring at retirement age in 2019 is $ 2,861 – $ 34,000 for the year.
<p class = "canvas-canvas-text canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You will probably need additional income from your savings in tax-advantaged retirement accounts and brokerage accounts, or additional sources such as pension income, fixed-income investments or annuities You may need to work in retirement to make ends meet, but make sure you know the income test If you are thinking of continuing to earn a salary while receiving benefits. "data-reactid =" 29 "> You will probably need additional income from your own savings in retirement accounts and tax brokerage benefits, or additional sources such as pension income, you can even need to work in retirement to make ends meet, but make sure you know the earnings test if you plan on continuing to earn a salary while receiving benefits.
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "N ° 2: aim to strengthen your profits"data-reactid =" 30 ">N ° 2: aim to strengthen your profits
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "To get the most accurate estimate possible of your can you expect to collect social security funds, open a "my social security" account on & nbsp;SSA.govif you have not already done it Once you have logged in, you can check the history of the SSA regarding your income and taxes paid to the social security system, as well as an estimate of your future benefits. It is good to check these records regularly to make sure your income and taxes paid are correct. Otherwise, you may receive smaller benefit checks than you have earned. "Data-reactid =" 31 "> To get the most accurate estimate of what you can expect from social security, set up a" my Social Security "account on SSA.gov, if it's not already Once you have logged in, you can view the SSA history regarding your income and taxes paid to the social security system, as well as an estimate of your future benefits. Check these records regularly to make sure your income and taxes paid are correct, otherwise you may receive smaller benefit checks than you have earned.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "In the meantime, there are a handful of ways for you to & nbsp;increase your social security benefits. "data-reactid =" 32 "> In the meantime, you have several ways to increase your social security benefits.
Start with the age at which you start to claim benefits. You can collect benefits from the age of 62 and up to the age of 70. For every year that you are late in collecting beyond your retirement age (FRA), 66 or 67 depending on your year of birth, your benefits are increased by 8% – up to the age of 70 . Delaying the age of 67 to 70 can make your checks fatter by 24% – enough to turn a $ 2,000 monthly check into a check for $ 2,480.
<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Of course, if you start collecting early, your Benefit checks will be smaller – but do not rule out the possibility of early collection Yes, checks will be smaller, but you will have many more.The system is designed for people with an average life time to collect about the same amount, no matter when they start collecting. start collecting at age 62. "data-reactid =" 34 "> Of course, if you start collecting early, your benefit checks will be smaller – but do not neglect the possibility of collecting them earlier Yes, the checks will be smaller, but you The system is designed so that people who have an average life accumulate about the same amount, no matter when they start collecting. It may be best to start collecting at age 62.
You can also work for at least 35 years, because the formula for calculating your benefits is based on your earnings during the 35 most profitable years (adjusted for inflation). If you have only earned one income for 29 years, the formula has six zeros, which gives you smaller checks than you would otherwise have received.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "You also want to have so much high income If you currently earn much more than in the past (on an inflation-adjusted basis), even if you have already worked 35 years, you might consider working for a year or two, The year of acquisition will start a year of low income, which will increase your benefits that are based on average monthly indexed earnings (AIME)."data-reactid =" 40 "> You also want to have the highest number of years of high income possible, if you currently earn much more than in the past (on an inflation-adjusted basis), even if you & Having already worked for 35 years, you might consider working for a year or two, as every year high incomes will start with a year of low incomes, which will increase your benefits based on indexed average monthly earnings (AIME) .
<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "# 3: Coordinate plans with your spouse"data-reactid =" 41 "># 3: Coordinate plans with your spouse
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Finally, be sure to coordinate your social security strategy intelligently with your spouse. Depending on your age and income history, you can use different strategies. "Data-reactid =" 42 "> Finally, be sure to intelligently coordinate your social security strategy with your spouse.Your earnings history, you can use different strategies.
For example, low wages begin to collect earlier, while high incomes are slow to collect benefits. This allows these already larger benefits to grow and gives you an income earlier than you both, until the big checks arrive later. Moreover, if one of you dies, the other will be able to get the higher benefit of both, and it would be useful to make one as big as possible.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The more you find out more about social securitythe more you withdraw – and this could make a significant difference to your retirement. "data-reactid =" 44 "> The more you learn about social security, the more you'll get out of it – and that could make a significant difference in your retirement.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 45 "> More from The Motley Fool
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Motley Fool has a disclosure policy."data-reactid =" 53 ">Motley Fool has a disclosure policy.
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