While there is no magic formula for United States citizens to get a perfect Social Security check, there are strategies. Because each citizen has a different work history, each citizen gets a different payment. A person who files for retirement at age 62 is not the same as a person who files for retirement at age 67.
Therefore, each senior has to pay close attention to his or her individual situation. Some retirees don’t wait past age 62 to apply for Social Security, and while that’s not a bad plan if we’ve thought about it before, sometimes it can be a little dangerous financially. But there are things we can do after retirement to help us have the best golden years possible.
For beneficiaries who already have a monthly Social Security check, there are a few strategies available. These strategies involve stopping the Social Security check and continuing to work, so it’s not a pleasant plan for everyone. But nothing is free in life and continuing to work a few more years can help in a huge way.
However, this strategy is not for everyone, as some may have trouble returning to work. Remember that each retiree is totally individual and there is no magic formula. That’s why we have to watch out when making decisions. If we make the wrong decision we may regret it later.
Contacting an advisor can be a good help, but only a help. Final decisions with Social Security are up to the individual retiree. That’s why no one can make the decision for anyone and it should be personal and individual.
WHAT SHOULD I DO TO IMPROVE MY SOCIAL SECURITY?
If we have retired at age 62, our Social Security check still has room for improvement. Therefore, we should stop our retirement and continue working. This is possible if we apply directly to the Administration.
Through this action we will get a little extra money every month once we return to retirement. The ideal action is to reapply for retirement at age 67 or 70. This will give us a much larger benefit, as the maximum check at these ages is $3,627 and $4,555, respectively.
Even if we no longer work and simply stop collecting Social Security until age 67 we will already get a larger check. This is because claiming Social Security at age 62 means losing 30% of our benefit. If we wait until age 67 we will get a payment of 100% of the money we have contributed.
HOW IS THE BENEFIT MONEY CALCULATED?
The Social Security Administration awards the amount of each Social Security check based on the individual’s record. This takes into account the years worked, the age of retirement and the salary as a worker.
To get the maximum possible check, we must work for 35 years at a high salary and apply for retirement at age 70. Only then could we obtain a payment of $4,555 per month.
The calculation of the Social Security check is obtained through an average with the 35 years worked with the highest salary. That is why it is important to have a high salary and work at least that long.
If you want to apply for retirement early, the minimum age is 62. But applying for Social Security check at that age is very detrimental to our economy. If we request payment at age 62 we will lose 30% of our check. If we want to reach 100% of the money we have contributed, we have to wait until we are at least 67 years old.