Within the entire United States, the organization of the retirement check is a really big deal. A Social Security beneficiary who gets a very small check when he or she retires can run into financial problems. So we should always squeeze the most out of everything related to our retirement check. If not, we should look for alternative sources of income.
If we plan to retire with only our Social Security check as a source of income, which is not recommended, we should maximize the payment. So if you are thinking that you will soon be among the group of retirees, it is a good idea to take note of what to do to increase your monthly payment. There are several elements to take into account, but there is one that greatly maximizes benefits.
Still, remember that the maximum check of $4,555 is almost unattainable for most Americans. Having a retirement with such a high payment is something for only a select few. So, strive to maximize the payment, yes, but without the need to obsess about reaching that amount. The important thing is to have a good balance between your monthly Social Security payment and your expenses.
THE MOST DECISIVE ELEMENT OF THE RETIREMENT CHECK
There are three key elements in the retirement check configuration. These three elements are very important, but there is one that is very important when applying for Social Security. That element is the age at which we apply for the benefit.
There are usually several common ages to apply for retirement. The minimum age is 62, except for Americans with a disability. After that, we can apply for the check whenever we want.
Applying for a check at 62 means losing 30% of the money that belongs to us as U.S. citizens. If we wait until age 67, we will get 100% of the money we have contributed. However, the best option is to wait until age 70. This will result in us getting a 100% benefit plus an extra for each year worked after age 67.
Therefore, this is the most determining element if we talk about the retirement check. Since it will not matter what we do with the other two elements if in the end we retire at age 62.
OTHER ELEMENTS THAT MAKE UP SOCIAL SECURITY
The other two elements that can shape Social Security are the years worked and the salary during those years worked. So before you apply for retirement make sure you have worked many years at a good salary.
The Administration will determine our Social Security check from 35 years worked with the highest salary. That will give us the biggest check possible. Each year worked below that number will result in a smaller benefit.
Even so, remember that we must take into account the retirement age. We can lose a lot of money if we apply for Social Security too early, even if we have contributed for 35 years with a high salary.