Choosing when to retire is a difficult decision. Throughout the United States, Social Security retirees make up a large portion of the population, and not everyone is familiar with how the mechanism that determines the amount of the check works. And the truth is that in order to achieve a good retirement, we must know how to set up the monthly benefit.
In this sense, there are three elements that directly shape the monthly Social Security check. These elements are the retirement age, the years worked and the salary during the years as a worker. If we take these three aspects into account and maximize them we will undoubtedly get a larger monthly retirement check.
But we must know that one of these three elements is key to be able to get a bigger check. At least, it is key to determine if we will lose part of the money we have contributed or not. Be that as it may, in order to set up a Social Security check, we must take all three elements into account. And forgetting any of these three key pieces can be a very bad idea.
How to get a bigger Social Security check?
If we want to get an extra $100 every month, or a similar figure, we must maximize the check. The truth is that the maximum Social Security age retirement payment is $4,873 in 2024. But that figure is really high and very difficult to achieve.
So, whether to increase by $100 or by $60 our monthly check we should keep in mind that:
- We should delay retirement as much as possible within our means. The minimum retirement age of 62 means that we lose 30% of the money we have contributed, so it is important not to retire at that age. The ideal is to apply for retirement at the age of 67.
- We must work a minimum of 35 years. Whatever the salary in those years, it is important to work a minimum of 35 years. If we do not do so, each year not worked below that figure will result in a much smaller check.
- We must have a good salary as a worker. The higher the salary, the higher the monthly benefit. The more money we earn every month the more taxes we pay and those taxes are what make up the monthly Social Security check.
With this in mind, we should get the biggest check possible within our means. It is true that reaching the maximum is not for all Americans, but it is possible to get a similar figure if we watch out for our work history before applying for Social Security.