Having a good retirement in the future is critical for anyone living in the United States. For that reason, keeping track of every detail that makes up the size of your Social Security check is very important. To achieve the best possible golden years, you need to keep three things in mind.
Social Security payments are monthly. This means that retirees have a check every month in which they receive their pre-allocated amount. This is something that no one can change, since the Federal Government has established it this way. Although the day of payment cannot be changed, the amount we receive each month can be changed.
And if we do not perform a series of actions, our check could be at risk. So much so that we could lose a large amount of dollars per month. Being clear about the best option to get a big Social Security check is as important as choosing your retirement age. Don’t let your benefit see a huge reduction and calculate your budget well. Is your Social Security benefit at risk?
How do we avoid losing our Social Security check?
To avoid losing a large part of our Social Security check and not risk our retirement money, we must consider three actions. Each of these actions will increase the monthly benefit a little. In addition to this there are other elements that we can control and must take into account.
Before looking at these three fundamental elements, it is worth noting that the other factors we must take into account are savings and debt. With a lot of savings, retirement will be easier. On the other hand, if we eliminate debt before we reach retirement, receiving a Social Security monthly payment will be enough to live on every month. So eliminate debt and save as much as possible while you are working.
Other than that, the three items that can put our Social Security money at risk are:
- Retirement age. In order to apply for retirement, it is mandatory to reach 62 years of age. However, in the case of applying for retirement at that age we would have 30% less of the money contributed. This would mean that our money would see a huge reduction. If possible, waiting until the age of 67 is ideal to obtain 100% of the money contributed.
- Years worked. The minimum is 10 years worked, but this would leave us with a check that is too small. The Administration calculates the Social Security check from the 35 years worked with the highest salary. So the minimum number of years to work is 35 years if we want to have a good retirement in the future.
- Salary. Having a low salary means putting our Social Security check at risk. The higher the salary, the higher the taxes. The taxes we pay will increase our monthly Social Security checks, so get the biggest check possible.
If we combine 35 years of work with a high salary and retirement at age 70 we could get the $4,555 check. Add to that eliminating debt and saving money, and your years collecting Social Security will be very peaceful and enjoyable.