While Social Security benefits should not be your primary source of income in the US, they can contribute significantly to your retirement earnings. There’s a significant difference between $1,465 and $2,119. The second payment is approximately $654 greater than the previous one. When inflation and rising prices cause millions of seniors to run out of money, it is prudent to consider this helpful idea.
There are several strategies to increase your Social Security payments during retirement. However, there is one thing that most individuals can do: select when to file for retirement benefits. Waiting until you reach Full Retirement Age can increase your benefits by around 44%.
Should you file for Social Security at 62 or at Full Retirement Age?
If you apply for Social Security at age 62, you will receive a 30% discount. That is a large sum of money, and few workers can afford it. Filing at 62 may negatively impact your income, but filing at Full Retirement Age ensures you receive 100% of your benefits.
As a result, there will be no reductions and no prizes. Filing at 67 can increase your future retirement payout to $2,119, compared to $1,465 at age 62.
Keep in mind that if you filed for Social Security at the age of 70, you may receive a payment of $2,634. Of course, if you pay the correct taxes.
Other ways to increase Social Security benefits without filing late
Filing beyond age 62 does not guarantee higher retirement benefits. For example, if you just work for ten years, you may be eligible for Social Security, but you will receive a very low amount in most situations.
However, if you have worked for at least 35 years, you will not receive a decrease. For example, if you work for 34 years, one year will be counted as $0 in earnings since the Social Security Administration utilizes 35-year calculations.
Raising your salary might significantly increase your retirement benefits. To receive the maximum benefit payment of $5,108 in 2025, you must:
- file at 70
- work for 35 years
- earn the taxable maximum for 35 years
- have jobs covered by SSA
Also See:- SSI: the Federal payment of $967 for seniors and people with a disability if you are short of money