Always having a good Social Security benefit is critical to retirement in the United States. That is why it is important to choose the moment when we apply for a pension check. This decision makes a big difference in the amount we will receive, which is why we need to know exactly which situation is most favorable for our pocketbook.
While it is tempting to apply for Social Security retirement as soon as possible, it may not be the best idea. Calculating our future cheque, seeing how much money we need and checking how we can increase our pension can help us have a better retirement.
The minimum age to apply for retirement is 62. Thereafter, any citizen who has worked a minimum of 10 years can apply for the monthly benefit. However, the cheque that arrives every month to a retiree with the Early Retirement Age, that is, retired at 62, could be too small. In these times of inflation and price increases on all services, like Netflix, for example, having a high benefit is the best we can do.
When is the best time to apply for Social Security?
The year itself doesn’t matter as much as how old we are. Retirement age is the key to being able to apply for a good Social Security check to help pay for all of our expenses. But, as we’ve said before, it’s not just income that’s important when it comes to calculating retirement.
In addition to this, expenses must also be taken into account. Applying for Early Retirement Age at age 62 will take 30% of the pension we have contributed. This means that if we are entitled to a Social Security check for $3,000, we will only receive $2,100 a month. This situation would not be the case if we waited until age 67. This is because we would have a Full Retirement Age and the cheque would be for 100% of the money contributed.
The best time to request a cheque depends on each personal situation. In these times of inflation it is difficult to determine what is the standard time that is best for a retiree. Waiting each year causes Social Security to increase, although it may not be worth it. As we’ve said before, study your situation and choose the best time for you.
How do I maximize my pension check?
Retirement age determines what your final Social Security check will be, but there are two other factors at play. On the one hand, we have the years contributed. The more years worked, the better the pension amount. To get a good pension we must work for 35 years, since the Administration averages what we have earned in the 35 years of highest salary.
On the other hand, another influential factor is the salary as such. The higher the salary, the higher the taxes. Since our Social Security benefit comes directly from taxes, paying more during our working years will give us a better benefit in the future.