One of the most desired times for United States citizens is undoubtedly retirement. Starting to collect a Social Security check on a monthly basis means in most cases to stop working. Because of this, citizens who get it end up having more time to do all the activities they want.
Reaching retirement and starting to collect a Social Security check doesn’t mean everything will go smoothly, though. The size of the check depends on a number of factors that can sometimes make it too small. If we don’t plan out our retirement very carefully, the monthly money could be insufficient.
And that is why we should never forget all the planning. The factors that influence within the amount of each check are three different ones. These three elements influence each other in such a way that neglecting one can cause the other two to also bring down the Social Security pension check.
So we must be very careful whenever we are planning for retirement. Every step is really important and we can’t forget that getting a good Social Security payment is not a one-day thing, it takes a long time. Have you planned for retirement yet?
Decide when to retire
Retirement age is something really important to receive more or less money in your monthly Social Security check. In this sense, Full Retirement Age is one of the best options, although each case is totally personal. Asking for Full Retirement Age means getting 100% of the money we have contributed as a worker.
Even so, the other two factors are the ones that influence the money contributed. And that is why we cannot leave out any element when planning for retirement. If you are thinking of applying for Full Retirement Age, pay attention to the other two elements.
The salary as a worker and the years worked
These two elements are vital to be able to reach a good figure with your retirement check. As we have said before, applying for Full Retirement Age means having a check for 100% of the money contributed.
But that money depends on the years worked and the salary as a worker. Working a minimum of 35 years is fundamental if we do not want our effort to be in vain. Each year not worked below that figure means a huge drop in the average. This is so because it would add 0 dollars to the average pension.
To this we must add our salary as workers. The monthly payment we will receive during retirement depends on the taxes we pay as workers. So the higher the salary the higher the taxes. This will eventually turn into a bigger Social Security check in the future.
How can I increase my retirement check further?
Applying for retirement at age 67 should be more than enough to have a good benefit. However, there is something we should also keep in mind. In order to reach the maximum figure of $4,555 in 2023, it is mandatory to wait to retire at age 70.
If we apply for the benefit before that age we will never be able to reach such a high figure. Even so, in most cases it will not be necessary to reach $4,555, as an average benefit could be sufficient.
If we retire at age 67, which is the Full Retirement Age, and have a history of 35 years working at a good salary we should have a good retirement. We may not reach the maximum payment, but we will have a good monthly payment.