Although you should not rely on Social Security payments as your primary source of income in the United States, they might be a significant portion of your retirement income. As you can see, there’s a significant difference between receiving $1,465 and $2,119.
In fact, the second payment is almost $654 more than the first. When inflation and rising prices cause millions of seniors to run out of money, it is prudent to consider this helpful idea.
There are several strategies to increase your Social Security payments during retirement. However, there is one thing that most individuals can do: select when to file for retirement benefits. Waiting until you reach Full Retirement Age can increase your benefits by around 44%.
Should you apply for Social Security at 62 or full retirement age?
If you apply for Social Security at age 62, you will receive a 30% discount. That is a large sum of money, and few workers can afford it. While filing at 62 can have a negative impact on your money, filing at Full Retirement Age will provide you with all of your advantages.
As a result, there will be no reductions and no prizes. If your future retirement cheque will be around $1,465 at 62, filing at 67 will allow you to receive $2,119.
Keep in mind that if you filed for Social Security at the age of 70, you may receive a payment of $2,634. Of course, if you pay the correct taxes.
Other ways to boost your Social Security benefits without filing late
Filing after age 62 is not the only option to boost your future retirement benefits. For example, if you just work for ten years, you may be eligible for Social Security, but you will receive a very low amount in most situations.
Also See: SSI: the Federal payment of $967 for seniors and people with a disability if you are short of money
Nonetheless, if you have worked for at least 35 years, you will not be eligible for a decrease. For example, if you work for 34 years, one year will be counted as $0 in earnings since the Social Security Administration utilises 35-year calculations.
Raising your wages is another excellent approach to increase your retirement benefit payments. To receive the maximum benefit payment of $5,108 in 2025, you must:
- file at 70
- work for 35 years
- earn the taxable maximum for 35 years
- have jobs covered by SSA