In the United States there are many ways to have a good retirement. The golden years can be much better if we have a good Social Security benefit. To get it, you have to know the details that make it possible. In addition to working with a good salary and doing it for 35 years, there are more elements to consider if we want a good retirement. Not everything depends on Social Security, but we can make it more comfortable and better.
That’s why today we’re going to learn 4 basic ideas about Social Security. All American citizens should know these ideas to be able to do with their pension the best they can. So, having a good Social Security is possible, but sometimes we have to consider many, many other factors. Let’s take a look at these 4 basic ideas about Social Security.
4 details about Social Security
These details are universal and apply to everyone. The only requirement is that you do not already have an active benefit, as these ideas are based on people who have not yet applied for Social Security. Let’s take a look at these ideas.
- Don’t rely 100% on Social Security for your retirement. This idea is key and basic to having a good retirement. The pension should not be our only source of income in our golden years. The COLA for 2023, inflation in prices and all the increases make the pension alone too little. That’s why we always need to look for alternative sources of income.
- Delay your retirement, but cautiously. It is tempting to wait until as many years as possible to apply for Social Security, but this can be counterproductive. The maximum retirement pension is $4,194 and you can only get it by waiting until age 70. But sometimes it’s not worth waiting that long because retiring at 67 may mean earning enough.
- Your pension is calculated on the 35 highest earning years. This does not mean that after working 35 years you have to stop working. The Social Security Administration takes your 35 years with the highest earnings to make the calculation. If you work at the same company for that long, it is very likely that you will earn more money in your later years, so you should keep working a few more years to increase your average.
- The SSA will not run out of funds. There is a common fear among pensioners about Social Security funding. It is true that it could happen, but it is very likely that nothing will happen in the end. Congress will be looking for solutions to this problem, so there is nothing to worry about for now.