In this article you will learn what are the benefits of Social Security and how the system works. In this way, you will have a clear idea of how much money you can get through this Administration.
In addition to all of this, you will also learn if your retirement plan fits in with your Social Security payment. You will also learn what the amount of money you receive when you start collecting when you apply for this assistance is based on.
It is also important to know when it is best to start collecting your Social Security check. The amount of money received depends a lot on this decision, so we need to be very wise in the decision we make.
This is how Social Security and your retirement benefits work.
Social Security payments are based on a worker’s lifetime earnings. This is always a percentage of total income.
In addition to this, it should also be considered that the years to be taken into account to make the percentage are the 35 years with the highest income. Thanks to this, the system is fairer and more balanced.
During the time you are working, the taxes you pay go directly to Social Security. In other words, the money is not saved so that you can collect it in the future. All the people who can receive these economic benefits receive it directly from the taxes that are paid month by month.
When is it better to start collecting retirement benefits?
The truth is, it all depends on what you need in your life. It is not possible to know the exact date when you start getting Social Security. We know that if you start collecting sooner, you will get less money.
Therefore, it is important to be aware of the situation. If you set up a retirement plan before retirement, you may want to consider picking up a Social Security check early. Otherwise, it is better to wait to collect the maximum amount possible.
Finally, it’s also worth noting that you can keep working if you wish. If this is the case, your National Insurance will be increased and you will be able to collect more money in the future.
How to calculate Social Security retirement benefits?
- The first thing you need to do is to create an account in my Social Security.
- On this website, you will have to fill in all your data to access the information.
Likewise, we leave you this video that explains perfectly how to perform the steps.