Getting the biggest of Social Security checks is one of the big goals for United States citizens. And that’s because if we get a good benefit for the golden years we won’t have to rely on other outside income.
Even so, it is true that we find that sometimes it can be very difficult to maximize our monthly benefit. It all depends on several factors and sometimes we find that we cannot control all those factors within our means.
So if we know the exact rules that define Social Security payments we can have a larger benefit at retirement. And those are three factors, but there is one of them that can eliminate up to 30% of the money we have contributed while working.
The other two factors are important, but no matter how much we maximize them we won’t get 100% of the work we’ve earned if we don’t do things right. So try to keep this in mind when applying for monthly Social Security.
How not to lose 30% of Social Security?
The rule regarding claiming Social Security benefits is based on three factors. The final amount will depend on the years worked, the salary during those years of work and the retirement age.
While the first two factors will cause us to contribute more or less money, the third will determine what percentage of that money we will get. Thus, requesting payment at 62 years of age, the minimum age for retirement, determines that we will get only 70% of the money we have contributed.
To avoid losing that 30% we will have to wait until the age of 67. At that age we will get the Full Retirement Age from Social Security and this will give us a bigger check.
In any case, even if we get 100% of the check does not mean that we will have a good benefit. In order to get a high Social Security benefit, we must also work for 35 years and have a high salary during those years.
If we wait until the age of 70 we will get a little extra money for each year we wait, so we can get up to the maximum of 4,873 dollars this year 2024. After this year, the figure will be higher due to the COLA, but for now that is the maximum we can get from this retirement benefit.