Checks are better when they are larger. The higher the amount, the better for our retirement quality of life. Bear in mind that many people cannot make ends meet with their Social Security checks. That is why it is important to achieve the maximum amount possible. Besides, having a large nest egg is vital as well.
The first question you might be wondering is retirement age. Many people are daydreaming about retiring as soon as possible. However, they do not think about the consequences it might have if they have not managed to save enough. You can start retirement at the age of 62 according to Social Security – SSA.
Being able to retire does not mean it is the best decision. The longer you wait to retire, the better it will be for your Social Security check. First of all, you should know that waiting until your Full Retirement Age would be essential to collect a 100% of your check. Otherwise, you get a reduction of up to 30%.
What is the best age to get the highest check possible?
As you can see, getting checks as early as 62 is possible. But you get a reduction of 30% of your full amount. Nevertheless, if you decide to put off your retirement for just 1 year, your check increases by 8%. Two years after Full Retirement Age means 16% extra. Three years later up to 24% more each month.
Increasing your check by 24% in just three years is possible. Of course, it is a personal decision and it is not possible in all jobs and positions. On the other hand, some people feel young and healthy at the age of 70. Some decide to carry on working until they are 70 because they are at their fullest potential.
On average, Social Security beneficiaries collect checks of about $1,700. Of course, there will be recipients that receive 3,500 while others get 1,000. This amount is different because it depends on the number of years you have worked and the earnings you got. That is why there are many different checks in the USA.
What is the maximum amount I could collect from a Social Security check?
Those who decide to retire at the age of 70 and meet the rest of the requirements can opt to get up to 4,555 dollars per month. To achieve it, you must have worked for at least 35 years. If you have not worked for 35 years in total, you will get a reduction in the Social Security check. Decreasing it is not nice at all.
Another requirement workers must keep in mind is to get the highest salary possible. Your annual earnings must meet the requirements Social Security establishes. In that way, you can collect the best check in retirement. That amount keeps increasing over the years, so your salary must increase too to get it.
It is true that your check will also become higher over the years. That is thanks to COLA or the Cost of Living Adjustment. It has the aim of maintaining the purchasing power of citizens. However, some people feel it is not enough to cope with the skyrocketing prices. so you had better keep investing and saving.
What is the best way to achieve your goal?
When it comes to being effective and achieving your goals, you must plan it. Work out from an early age the amount you would like to have when you are in retirement. Remember that you may need more money than retirees do now. Setting a feasible goal will allow you to get extra motivation and get a higher check.
Do not forget to use tools that show you how much you could earn depending on your retirement age and earnings. This will provide you with a clear picture of the future retirement check. Make the most of your earnings and invest them wisely. Being too conservative may not give you enough, but do not risk them either.
This Social Security quick calculator will allow you to calculate what you could collect in retirement. Do not put it off and start making the most of your earnings now. Before you regret it, act now. Retirement is not that far ahead in time. Time flies and should not be wasted. Get the largest check available!