Social Security retirement benefits are something to should take good care of. To make it grow strong and healthy, it is important that you understand how it works. The first strategy to keep in mind is not to follow suit. Many people do what other members of their family, colleagues, or friends have done. There are might be endless strategies.
However, it is essential that you customize those strategies because nobody is in your exact situation. There are so many things to take into account that you are unique. Once you have ensured to know what you need for your personal situation in retirement, learn the ropes of Social Security benefits. SSA will only take 35 years of your work life.
Which years will SSA choose from my work life?
Social Security will work out the amount of your benefit with the highest-earnings years of your work life. Even if you worked for 45 years, they will only take the best-paid 35 years. Working for at least 35 years is key. Otherwise, you would be reducing the amount of money you will get for your Social Security cheque. Use the SSA quick calculator to calculate your benefit.
Check Social Security’s chart to see your Full Retirement Age. In this way, you can see when it is best to retire and start claiming your benefit. Retiring at the age of 62 will reduce your retirement benefit. It is something you should avoid if you have not managed to save enough. Running out of money in retirement is not a good idea at all.
What if I claim my retirement benefits at 70?
On the contrary, if you do not claim your Social Security retirement benefit until you are 70, you will get more money. Not only will you get a larger check, but you will have been able to keep saving money for your nest egg. Remember that people tend to live much longer than a few decades ago. So, it does make sense to retire a little later.
Working conditions have improved a lot and people are much healthier. So, why not retire later than usual? Besides, working in retirement, having other sources of income may be necessary too. Do not forget about taxes, work out your earnings to avoid paying taxes. Finally, keep track of your Social Security statements and make sure to take advantage of spousal or survivor benefits.