One of the most important moments in the life of a United States citizen is the time to start collecting a Social Security check. And once that time comes, there is no turning back in most cases.
So the dollar figure we get from the first of the Social Security retirement checks is the dollar figure we will get for the rest of the months we collect the benefit. This will change somewhat with the COLA, but there is nothing we can do to increase the payment through this.
The COLA is automatically adjusted from the increase in inflation, so there is nothing each retiree can do to make the COLA raise the retirement check. What a senior can do is increase the check from before they apply for it.
If we take into account all the parameters that make up the Social Security check, it is possible that we will end up with a good benefit. Otherwise, we would be losing part of the money we are entitled to as retirees.
In order to configure our retirement payment in the best possible way, it is mandatory to take into account all the aspects. So we must not make the following mistakes if we do not want to lose part of our Social Security check.
HOW TO AVOID LOSING PART OF YOUR SOCIAL SECURITY?
The first thing we need to do is to understand how the Social Security check is calculated. The final amount depends on three main factors. The first factor is retirement age. The second factor is years worked. The third factor is your salary as a worker.
With all of this in mind, we must check that we maximize all elements if we do not want to lose part of our retirement check. While it is true that reaching the maximum $4,555 is virtually impossible, reaching a figure close to it is possible.
RETIREMENT AGE
This point is key to whether or not we lose part of our benefit. The minimum age for retirement is 62, but that does not mean that it is convenient to retire so early.
In the case of requesting retirement at 62 we are going to lose 30% of the money we have contributed. That means that if we have a check for $3,000 at the end we will get only $2,100. To avoid this, what we should do is wait until we are 67 or 70 years old.
At 67 the retirement is 100%. If we go beyond that age, the figure can increase a little more. The limit is 70 years. After age 70 there is no point in continuing to contribute because Social Security will not increase, at least in the vast majority of cases.
YEARS WORKED AND SALARY BEFORE APPLYING FOR SOCIAL SECURITY
These two elements go hand in hand. The years worked are also important if we do not want to lose part of the benefit. Thus, we must work at least 35 years.
This is because the calculation of the benefit is made through the 35 years with the highest salary. And this is where the other element comes into play. If we work 40 years, only the 35 years with the highest salary will be used to calculate the benefit.
Likewise, working less than 35 years will mean losing part of the benefit. This is because each year not worked below that figure will result in $0 being added to the total average. For that reason, it could also lower the monthly retirement check a lot.