Checks from the Social Security Administration reach retired United States citizens once a month. The amount of these checks depends directly on the citizens’ work history. However, there are several elements that shape the amount of money an American will receive in his or her golden years.
Because of inflation and price increases in general, Social Security checks seem smaller and smaller. And it doesn’t matter what the annual COLA increase is, since it doesn’t take into account the following year, only the year before. In short, in many cases the Social Security check is too small to cover all monthly expenses.
For that reason, there are many useful tips for retirees, such as not having debts during retirement or saving during the working age. But if we are looking for a good monthly Social Security check, there is one thing we should do.
This way we won’t get a huge check during retirement, but we will make sure our payment is not so small. Add to this other tips such as eliminating debt and mortgages, and retirement can be much more enjoyable.
What should we avoid so that our retirement check is not so small?
If we keep in mind that there are three elements that make up the Social Security check, we should watch out for all of them equally. But there is one that causes us to lose up to 30% of the monthly payment contributed. This element is the retirement age. Depending on the retirement age, our check could have a huge reduction.
So we must choose well the moment when we retire. This is the most differential element. Pay attention to the percentage that we can get from the money contributed depending on the age at which we apply for the retirement check.
- 70% of the retirement. To get a check for 70% of the money contributed we must apply for Early Retirement Age. This is at age 62. This is the minimum age to start collecting Social Security, but it may not be convenient because of the amount of money we lose.
- 71%-99% of the retirement check. In order to get a payment at this full percentage we must retire between the ages of 62 and 67. We must keep in mind that at age 62 we will get 70% and 100% comes at age 67.
- 100% of the money contributed. For this it is mandatory to wait until the age of 67. This is the Full Retirement Age. For many, it may not be worth waiting that long, although if we have a high check it is better to wait until 67 and thus get a very large Social Security.
- Over 100%. It is possible to go beyond 100% of the money we have contributed. Every year we work after age 67 we will get a plus in our benefit. The maximum age is 70, since after that there is no other extra benefit.
Working until age 70 is the only way to reach the maximum check of $4,555 in 2023. So if you want to have a huge benefit remember that you must reach that retirement age before claiming monthly Social Security.