have you heard about social security Annual bonus of $16,728? There is really no “bonus” that retirees can collect. The Social Security Administration (SSA) specific expression The benefit amount is determined based on lifetime earnings.
1st year after retirement: 2 things to save on and 3 things to splurge on
Find: Simple and effective ways to enhance your retirement life
However, there are ways to create your own bonuses. maximizing the amount you are entitled to receive it. Here are some ways to do that.
increase income
Social Security benefits are calculated based on the 35 years in which you earned the most. If you have consecutive years of low or no income, that will also be factored into the calculation and reduce the amount you qualify for.
by S.S.A., each year worked replaces a year of zero or low income in calculating Social Security benefits. This allows you to increase your benefit amount. However, there is a cap on the income used to calculate retirement benefits. Earnings up to $160,200 in 2023 will be used to calculate your payment, which will be adjusted annually for inflation.
Please wait until you are 70 to collect it.
By waiting to collect Social Security benefits until age 70, you can ensure that you receive the maximum amount of benefits.
Although only 10% of workers wait until then, the researchers found that filing a claim before age 70 increases the estimated median household loss in lifetime discretionary spending for claimants ages 45 to 62. We found it to be $182,370. CNBC reported. Retirement benefits at age 70 are 76% higher than retirement benefits at age 62, after adjusting for inflation.
social security: No matter your age, don’t apply for benefits until you reach this milestone
Read next: 4 Social Security reforms from Biden that could hit your wallet by 2024
Claim spousal benefits when you reach full retirement age
Couples should be strategic Claiming spousal allowance. Unlike individual benefits, spousal benefits do not increase if you delay payments beyond retirement age. Your FRA depends on your year of birth, but is usually 66 or 67 years old. According to the SSA, the amount of your spousal benefit is determined based on your income or half of your higher earner’s benefit, whichever is higher.
GOBankingRates Details
This article was first published GOBankingRates.com: Social Security: Is the $16,728 annual bonus real?