Social Security benefits could be a very important asset in retirement in the USA. However, the first tip is not to put all your eggs in one basket. In this way, you will not just rely on it if something goes wrong. That being said, you will have to work for at least 35 years. Otherwise, your Social Security benefits will start to decrease if you have not worked for those years.
Secondly, you had better earn as much money as possible. By doing so, you can increase your future Social Security benefits. Bear in mind that they take into account your top earnings for a period of 35 years. So, if you have worked longer than that, they would get rid of the years when you earned less money. According to AARP, the average benefit in retirement will be about $1,827 in 2023.
Is it important the age at which I claim Social Security benefits?
It is of vital importance to know that the age you retire to claim benefits matters. The earlier you retire the lower your Social Security retirement benefit will be. They will reduce the amount of your check if you start collecting it at the age of 62, which is the earliest. On the contrary, if you start claiming it at the age of 70, you will have increased your check by 24%.
If you are getting more money before retiring than in your past work life, it would be best to keep working too. Then, you can replace those lower-paid years with higher-paid years. It is important to make sure the amount of money you have earned appears in your records correctly. Not doing so could imply there could be some errors and you might end up getting less money.
How can I check my earnings record?
It will be through your my Social Security account the best way to check your earnings statement. If you are age 60 and you still have not got a SSA online account, they will send you the statement by mail 3 months before your birthday. Besides, you should also check your Full Retirement Age. Those whose birth was in or after 1960 have their FRA at 67.
Delay your retirement if you think you will need extra money to cope with inflation and the cost of living. Last but not least, it would be wise to work out the best way to get more money if you have a spouse. Who claims Social Security retirement benefits first is something to pay attention to. You may be eligible for spousal benefits when you earn a lot less.