Getting a big Social Security check for a United States resident should be one of the big goals. While it is true that we should not rely solely on collecting a monthly benefit from the Social Security Administration, when retirement comes around every month the check is welcome. That’s why we can’t afford to lose money from monthly pensioner checks.
A good retirement plan is essential to achieve this goal. If we don’t have everything planned long before we start collecting Social Security, we will surely have lost a lot of money in the end. A plan of action to maximize our chances of getting a lot of money is necessary and without it we may not succeed.
The biggest problem comes if we have not had a good retirement plan and have already applied for Social Security. After we start collecting the monthly benefit, increasing it is very difficult. Therefore, we must think very carefully about what we do before taking this final step. Otherwise, it is certain that we will lose a lot of money that could be useful for our day-to-day expenses.
One mistake will cause us to lose a lot of Social Security money
In order not to make this mistake and thus lose a lot of monthly Social Security money, we must know which elements make up the retirement pension. In total there are 3 main elements that make our monthly money more or less. And one of these three elements can be the key to losing a large part of the money we have contributed for retirement.
The three elements are the salary as a worker, the years worked and the retirement age. Each of these factors has a direct influence on the Social Security we will get in our golden years. None of the three elements should be neglected, but we should also keep in mind that one of them will have a very direct influence.
We are talking about Retirement Age. Within this aspect of setting up the Social Security check we find that we stand to lose 30% if we retire too early. This will mean a lot of money, and if we have a benefit of $1,000 at the end we will only get a check of $700 a month.
This will be the case if we apply for retirement at age 62, the minimum age to do so. If we want to avoid this mistake we will have to wait until the age of 67. Only then will we get 100% of the money we have contributed. If, on the other hand, we want to get a bigger check, we must wait until the age of 70. After the age of 70 there is no other benefit, so there is no point in going beyond that.