This month, some Social Security recipients may get checks that are bigger than usual, but they have to meet some special conditions. In the U.S., people’s monthly incomes can change a lot. In September, some retirees will see a big jump in their Social Security checks.
There are states where seniors can get more than $24,000 a year in pensions, and states where it may be much less. How much money someone gets depends on a number of factors, including how much money they made in the past and where they live. So, some states stand out because they give bigger checks to retirees than others. It’s important to know why this is happening.
Beneficiaries eligible to receive an above-average increase in Social Security checks in September
The way that Social Security calculates benefits means that monthly benefit increases are different from state to state. This means that some retirees get more benefits in some states, and the date of the first application also affects the real benefit amount.
Even so, it looks like the average amount given to people will be different, with some states getting bigger checks than others. Because of how the benefits are calculated, which can change based on the start date and total earnings, some states may give retirees bigger Social Security benefits.
A new analysis by The Motley Fool says that these factors may cause some states’ Social Security payments to be higher than others’. Because of the cost of living adjustment (COLA), the typical income in some states is much higher than in others.
This means that Social Security payments are higher in those states. This is the list of states with the biggest median monthly Social Security checks, according to the Motley Fool report:
- New Jersey: $2,100
- Connecticut: $2,084
- Delaware: $2,064
- New Hampshire: $2,039
- Maryland: $2,008
- Michigan: $2,005
- Washington: $1,992
- Minnesota: $1,982
- Indiana: $1,952
- Massachusetts: $1,946
It’s important to note that moving to one of these places doesn’t mean your Social Security payments will go up. Don’t forget that a person’s monthly benefits are based on their earnings past and the Social Security Administration’s (SSA) calculations, not on where they live.
Other strategies to maximize Social Security checks that beneficiaries need to know
As people age, they start to think about what they will do to make money when they can’t work anymore. Of course, Social Security checks can be helpful, but sometimes people don’t plan ahead and end up with an average monthly payment that isn’t enough to meet their needs.
If you want to get the most out of your Social Security checks so that you have enough money in the future, here are three important ideas you should start thinking about right away:
- Working only 10 years might not be enough. Always think about working for at least 35 years. Benefits are determined by the SSA using the 35 years with the highest inflation-adjusted earnings. The number of years without wages will negatively affect your benefit amount if you have less than 35 years of earnings. Years without earnings cannot reduce your benefits; you must work for at least 35 years to avoid this. In addition, working past age 35 can improve your benefits by replacing years of lower earnings with years of higher earnings.
- Focus on maximizing your earnings. The amount of income you pay in Social Security taxes throughout your career directly affects the size of your paycheck. As a result, median family income tends to be higher in states with the highest average wages. Higher benefits can be obtained by increasing your earnings, provided you stay below the $168,600 maximum taxable earnings limit for 2024.
- Choose the best age to claim Social Security checks. The age at which you begin receiving Social Security benefits affects your monthly checks. Claiming benefits before your full retirement age (FRA) can reduce your payments by as much as 30%. Delaying benefits beyond your FRA can increase your payments by up to 32%, with the maximum delay occurring at age 70. When you decide to claim benefits, consider your financial situation and life expectancy.
Also See:- All new SNAP payments of $1,751 will be made in September: EBT card load days have been set