Although many Americans think it is possible to get a bonus of more than $16,700 a year, the truth is that the United States Social Security Administration does not send extra checks that retirees can get. Each retiree gets their monthly check and nothing else, with no extra checks of any kind.
However, it is true that between the maximum benefit and the average benefit there can be a large amount of money that retirees are missing out on. And that is where we find the fantastic $16,728 bonus, the figure of which is variable for each citizen. The $16,728 is not an exact bonus figure, but an average taking into account the average and maximum benefits of all states.
Therefore, what we do need to keep in mind is not that there is a bonus as such, but that we should maximize the Social Security payment as much as possible. If you have not yet applied for a monthly check, you could be on time to have a higher benefit and thus collect a little more each month. If you are already receiving your monthly pension, it is not possible to increase your check.
But it is possible to apply for other types of benefits such as Supplemental Security Income or SNAP Food Stamps. In that case, you won’t get extra retirement checks, but you will get a little more money on a monthly basis.
HOW TO MAXIMIZE YOUR SOCIAL SECURITY BENEFIT?
The first of the mandatory items to maximize your Social Security benefit is to not have applied for it yet. If that is your case, pay attention to the steps below. Each of these steps is critical to being able to reach a good figure on your retirement checks.
In addition, the steps have implications for each other. So we cannot do one of the actions and forget the other two. We must take into account all three elements to have a good retirement in the future.
RETIREMENT AGE
The years at which we apply for a Social Security check will cause us to have a higher or lower check. If we apply for retirement at age 62, we will lose 30% of the money we have contributed. This means that out of every $1,000 we will lose $300. This is certainly a very large figure, so we must calculate our retirement age carefully.
However, if we wait until the age of 67 we will get 100% of the money we have contributed. But if we go further and wait until the age of 70 we will find ourselves with a bonus and we will pass the 100% limit. Only then can we get the maximum monthly payment of $4,555.
YEARS WORKED AND SALARY BEFORE SOCIAL SECURITY
These last two elements of the trio of aspects affecting Social Security are closely tied together. Years worked and salary during those years will shape the check we contribute as workers.
The minimum number of years we must work is 35 years. Each year worked below this figure the Social Security Administration will add $0 to the average. So if we have worked for 34 years with a salary of $3,000 per month, the average will be made with that salary for the 34 years and $0 will be added to the last year of salary.
This brings the average down a lot. The same is true for salary. If we work more than 35 years, Social Security will be calculated from the 35 years worked with the highest salary. This is also why it is so important to have a large check for as long as possible.
In short, we should work for 35 years at a high salary and apply for retirement at age 70. Only in that way will we get the biggest possible check from Social Security.