You have been contributing to the Social Security fund over a lifetime of work, so you may also make the most of your benefits. Here are nine ways in which you could be able to boost your Social Security Benefits.
KEY TAKEAWAYS
- Delay using until age 70 and you’ll get your maximum amount.
- Wait even longer and you might qualify for delayed retirement credits.
- If you work while getting benefits, be sure to don’t run to the earned-income limits which will reduce your benefits.
Work for three (3) decades – 35 years
You can be eligible for Social Security benefits after working less than a decade, and you can start receiving gains as early as age 62 or as late as age 70. Your benefit amount is based on the average of your 35 highest-earning years.
As your advantage is based on your highest-earning decades, the more you earn, the greater your advantage. There are limitations, however. The maximum benefits for 2020 are $2,265 for those retiring at age 62, $3,011 for those retiring at the full retirement age of 66, and $3,790 for those retiring at age 70.
As you can see in the highest levels previously, you can retire as young as 62 and collect Social Security, but your benefits will be reduced by 25% to 30%. For everyone born after 1942, the full retirement age is 66, with just two weeks additional for each year after 1954. For those born in 1960 and after, it is age 67.
It is wise to wait until the full retirement age to start collecting in order to get the maximum amount you’re eligible to receive. Even better, wait even longer and you could be qualified for delayed retirement credits that increase your monthly payment.
Subscribe for Married Benefits
If you’re married and have little earned cash, you may be qualified for spousal benefits of up to 50 percent of your partner’s eligible amount. If you are at least 62 years old and have a child in your care, you may qualify for benefits through your spouse. The spousal benefit is often as much as 50 percent of the amount of the partner’s benefit, depending on when the partner retires.
In reality, both parties in a divorce can claim spousal benefits depending on the other partner’s Social Security earnings. But if you have remarried, you can’t collect your ex-spouse’s benefits.
Get a Dependent Benefit
If you are retired but still have dependents under age 19, they’re entitled to around 50 percent of your benefit. This advantage does not decrease the amount of Social Security benefits that a parent can receive. They are additional to what the household receives.
Keep a close eye on your earnings
If you continue to work after you start receiving Social Security payments, then maintain track of your earnings to ensure that they don’t exceed the allowed limit. For 2020 the limit on earned income is $18,240 for recipients under full retirement age and $48,600 for those at or above full retirement age.
$48,600 is the highest earned income amount in 2020 for individuals at or over full retirement age; your Social Security benefits are reduced if you exceed it.
Prevent a Tax Bracket Bump
If you’re working while receiving benefits, you also need to be on the lookout for tax bracket. Your earnings plus Social Security could put you up a notch from the tax table. If your deceased spouse (or ex-spouse) was qualified for a higher Social Security payment than you are, you might be eligible for this greater survivor benefit. You may be qualified for the greater benefit even if your partner died prior to applying for benefits.
Check for Mistakes
You obtain a Social Security statement every year. Do not assume it is accurate. Check the numbers and report any mistakes to the Social Security Administration. Remember, your gains are based upon the average of your 35 highest-earning decades. A miscalculation for one or two of these years could impact your advantage for the rest of your life.
Change Your Mind
You might have the right to suspend your benefit, repay the money you’ve already obtained, and begin collecting benefits again later. You can do this as long as you have been receiving benefits for less than a complete calendar year.
This may happen if you get a job once you retire or get money and decide you can afford to postpone filing to have a greater benefit check. When you record later, your advantage ought to be considerably greater.