Many seniors rely heavily on Social Security to make ends meet in retirement. And those benefits may become an important source of income for you as well.
That’s why it’s so important to do everything you can to receive generous Social Security benefits in the future. And if you make these moves next year, you might end up doing just that.
1. Increase your salary
Social Security doesn’t pay all retirees the same amount each month. Rather, monthly benefits are determined by an individual’s earning history.
More specifically, the monthly benefits you receive after retirement are based on your earnings during your highest earning years of 35 years of service. Therefore, the more profit you can make, the more profit you can make in the end.
However, one misconception is that you must have earned income to count for Social Security purposes.the truth is that Any The income you earn and the taxes you pay count toward your future profits. So if you’re looking to join the gig economy in 2024 and boost your income with a side hustle, you may be able to set aside a larger monthly benefit in retirement. Not to mention, it can also give you more purchasing power in the new year.
2. Check if there are any errors in the income statement
Each year, the Social Security Administration (SSA) issues an income statement to workers summarizing their wages. It’s important to check your statement for errors because underreporting your income can result in your Social Security benefits being lower than you’re actually entitled to.
Currently, if you are under 60 years of age, your income statement will not be automatically mailed to you, so you must create an account on the SSA website to access your income statement. But it’s not difficult. And from there, you can not only monitor your recorded income, but also get an estimate of your future Social Security benefits.
3. Delay filing if you are at full retirement age
If you reach full retirement age (FRA) in 2024, you may be inclined to enroll in Social Security right away. After all, at that point you don’t have to worry about any kind of reduction. But if you’re willing and able to be a little more patient, you can earn higher monthly benefits over your lifetime.
Granted, you may need to keep up some work to make that possible. But if you do and your job isn’t miserable, cutting back on work can really work to your advantage.
Every time you delay a Social Security claim beyond FRA, your monthly benefits will increase by 8%. Currently, this stipend only lasts until he is 70 years old. Still, you can get significant benefits by delaying your application as much as possible. And if you don’t want to wait until age 70 to collect Social Security, wait a year or two beyond your FRA. It’s certainly a reasonable compromise.
Increasing Social Security benefits could significantly reduce financial stress in retirement. If you take these steps in the new year, you’ll be more likely to be satisfied when it’s time to receive your monthly benefits.