Three actions that will boost your social security checks – The Fool Motley

Social security is a good supplement to your personal retirement savings, but there is no live pensioner who does not want this check to be just a little bigger. The average Social Security retirement benefit is $ 1,417 per month, but with careful planning, you can beat the average and ease the pressure on your own retirement savings. Here are three safe ways to increase your social security benefits.

1. Work at least 35 years

Your social security benefits are calculated on the basis of your average monthly earnings during the 35 most prosperous years of your life. If you do not work for 35 years, you are automatically disadvantaged because you will have several zeros in your average, which will reduce your benefits. And if you work less than 10 years, you will not be eligible for social security at all.

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If you want to get as many social security checks as possible, you must aim to work for more than 35 years. Most people earn later in their lives than when they started working. By working for more than 35 years, these years of low wages will be replaced by your later years of work when your social security benefits are calculated. This will result in a larger monthly check.

2. Increase your income

As I mentioned above, your social security benefits are calculated based on the 35 most prosperous years of your life. So all you can do now to increase your income will automatically result in higher social security checks when you are ready to retire.

You can approach this problem in several ways. You can aim for increases or promotions at your current job, look for a better paying job or choose another job to help you earn extra income during your free time.

But if you are lucky enough to make more than $ 128,400 this year, earning more will not help your Social Security benefits. No amount of money earned beyond this limit is subject to the Social Security Tax and, therefore, it will not be of any benefit to you if you apply for Social Security later. .

3. Delay benefits

You can start claiming Social Security benefits at age 62, but you must wait until you reach retirement age, 66 or 67, depending on your year of birth, to receive 100% of the amount provided by check. If you start applying earlier, you will receive a reduced amount by check. Those who have reached the age of retirement at age 66 and who start claiming benefits at age 62 will only receive 75% of their benefits by check, while those whose retirement age at age 67 years begins to claim at age 62 will receive only 70%.

If you have the means, it is wise to delay taking Social Security, at least until the retirement age. But it's even better if you can wait until you're 70 years old. The longer you wait before you start taking Social Security, the bigger your checks will be, until you get the maximum of 124% or 132% at age 70, depending on whether your retirement age is 67 or 66.

To give you an example of the importance of the difference, suppose that you are entitled to the average payment of $ 1,417 per month from Social Security. If you reach the age of 67 and are waiting until you receive benefits, you will receive $ 1,417 per month. But if you started taking Social Security at age 62, you will only receive $ 992 a month. If you wait until 70, you will receive $ 1,757 by check.

It is helpful to understand how your social security benefits are calculated and how you can influence them. By taking these simple steps, you can benefit from the greatest Social Security checks and a more comfortable retirement.