Social Securitybenefits and the amount of money everyone gets are not the same at all. As you may already know, some people receive more money than others. Although you might know the basic reasons, you may not know the other ones. This may result in getting less money in your Social Security check. So, if you are a worker and you want to make the most of your money, pay close attention to the following information.
One thing that may affect your Social Security retirement check is the money that you receive apart from it. It could be from a job because you have decided to keep on working or you have another source of income. According to Social Security Administration, if you earn too much money because you still work and it is before full retirement age, your benefits might become smaller. Having other sources of income and exceeding the limits may imply paying taxes.
The second thing that may change the amount you get is the age you are when you claim Social Security benefits. As there is a big difference between retiring at the age of 62 and at the age of 70, the amount beneficiaries receive is also different. Factor number three is that you can make your check bigger permanently by working longer. In general, each month you delay your retirement, you receive a higher amount. Some people keep working until they are 70 to get as much as possible and get more during retirement.
Does Social Security take into account your birthdate in order to get retirement benefits?
Yes, they do. They need to take your birthdate into consideration since it sets your full retirement age. Retirementage may differ from one group’s age to another. Social Security increases the retirement age over time. For instance, those born in 1960 or after that year, reach their full retirement age at 67. While those born from 1943 to 1954 could retire at the age of 66. So this is the fourth factor.
The fifth factor is the earnings you had during your work life. How much money you got does matter. The sixth factor you need to bear in mind is that Social Security also has a look at the 35 years when your earnings were the highest. If you have not worked for 35 years, Social Security will use $0 as the reference for those missing years. Number seven has to do with a spousal benefit.
This happens when your husband or wife out-earned you and if they are getting benefits now. You may want to contact Social Security and have a look to see whether you may get more money or not in your monthly check. Unless you are 62, you cannot apply for this spousal benefit. As you can see, there are many things you could do to get a higher check from Social Security.