If you want to receive more money from Social Security, here’s how to get it.
December Social Security payments, important dates, and updates
Here are important dates for December Social Security payments and the latest updates, including January’s 2.8% cost-of-living adjustment.
Ideally, you will be able to retire with money that you have saved yourself. But here’s where it gets scary.
Even if you manage your retirement savings wisely and are careful with withdrawals from your IRA or 401(k), there’s no guarantee you won’t outlive your money. Social Security, on the other hand, is guaranteed to pay monthly benefits for the rest of your life. Therefore, the more you can enjoy these benefits, the more financially secure you may feel in retirement.
The good news is that there are steps you can take to increase your Social Security benefits. Here are three key strategies to focus on.
1. Increase your income with a side job
The more money you earn (up to a certain threshold), the larger your Social Security check will be in retirement. But did you know that it’s not just your salary that counts toward future benefits?
All the income you earn and pay taxes on counts toward Social Security. So if you can increase your paycheck with a side job, you could potentially get more money from Social Security in the future.
Plus, that extra income can help you maximize your IRA or 401(k) each year. Or you can come close to it. So there’s a double win.
2. Delaying claims beyond full retirement age
If you wait to claim until you reach retirement age, you may be eligible to receive your monthly Social Security benefits without reduction. This age is 67 years for people born after 1960.
However, your benefits will increase by 8% for each year you hold off on claiming benefits beyond your full retirement age. And while that incentive ends at age 70, waiting means you have a chance to earn an even bigger monthly check.
The thing to keep in mind here is that if you delay Social Security, you’ll miss out on payments you could have received sooner. If you have health problems or suspect that you won’t live long, this strategy may not be the best for you. But if you think you’ll live long into your 90s, delaying claiming Social Security until age 70 could potentially give you much more lifetime income from the program.
3. Withdrawal of applied early request
You can apply for Social Security starting at age 62. However, this has a major drawback. That means your monthly benefits will be reduced for the rest of your life.
If you’ve already applied for benefits at age 62 and regret it, don’t despair. You can exercise your redo option within 12 months of the claim.
All Social Security recipients can start over only once in their lifetime. If you withdraw your claim for benefits and repay the Social Security Administration for all the money you received in benefits, you can reapply at a later date, thereby securing a higher monthly payment.
Get ready to be guaranteed more income
It’s never a good idea to try to retire on Social Security alone, but these benefits can end up making up a large portion of a senior’s income. Therefore, it is beneficial to try to get as much money as possible from Social Security.
These strategies can increase profits not only on a monthly basis, but also potentially on a lifetime basis. So it’s worth doing everything you can to increase your income and delay your claims during your tenure. Also, if you file for Social Security early, know that if you act quickly enough, you may be able to reverse that decision and secure larger benefits for the remainder of your retirement.
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