Although it is not entirely advisable, millions of United States citizens live on just their Social Security check each month. To this we could also add Supplemental Security Income in some cases. But without the monthly SSI, the Social Security check for retirement due to age or disability may not be enough per month.
And that’s why we need to be aware of the money we need every month. Aside from that, we also have to squeeze the most out of our Social Security check if we don’t want to get into economic and financial trouble in the future. For that reason it is not only important to maximize retirement check but also to control all the financial aspects of our day to day life.
There are many actions we can take to have a better life during our golden years with just a Social Security check. So let’s take a look at three main actions that will make retirement time much smoother and much better. These three actions may not be easy for everyone, but they are worth it.
Actions to make your Social Security check go far enough
Getting the best Social Security check is a must if we are planning to live on Social Security alone. So, we could say that the first of the actions is to do that. On the other hand, staying out of debt and saving are the other two main actions when it comes to getting the best retirement possible.
So let’s take a look at how we can develop each of these actions to squeeze the most out of them.
Maximize your Social Security check
This action is critical to getting the best retirement. If we maximize our Social Security check, our retirement will be easier and more comfortable. To do so, we have to take into account three elements:
- Retirement age.
- Years worked.
- Salary.
The retirement age will cause us to lose up to 30% of our monthly check if we do not choose well. 62 is the minimum age to get that check from Social Security, but it is advisable to wait until 67 to get 100% of the money contributed.
On the other hand, the years worked and the salary as a worker are two very close elements. The ideal is to get a high salary and work a minimum of 35 years before applying for retirement. Oh, and don’t forget that in order to get the maximum check of $4,555 per month in 2023, it is mandatory to wait until age 70 before applying for Social Security.
Save as much as possible
While you are working you have a good salary and can save some of that money. There is no minimum or maximum that we can save, but there is a recommended percentage. About 3% of our monthly salary is a good figure to keep in mind.
If we do this, at the end of our time as a worker we will have a good amount saved that will help us to live better. If we add to that the monthly check that we have maximized our economy will be very good.
Eliminate debts
Reaching retirement with debt is a bad idea. This is because our Social Security check will always be less than our salary as a worker. Therefore, if we have to pay part of our check in debt the percentage will be higher.
On top of that, the longer we take to pay off the debts and mortgage the more we will pay due to interest. So before applying for a Social Security check, try to pay off as many debts as possible.