Maximize Your Social Security Benefits for a Better Retirement

One of the most important things Americans have to do prior to applying for Social Security benefits is save for retirement. The average retirement savings balance for Americans across all age groups is $89,300, current. It’s not an ideal number, but it’s understandable, as most people can still have decades to accumulate retirement savings.  

But when you look at how much people in their 60s have saved for retirement—an average of $112,500—that’s a troubling number.  

Unlike younger people, people entering their 60s are often at the end of their careers and don’t have the time to build their savings to a point where they can live a comfortable retirement. It means that a lot of people approaching retirement age are likely to have to obtain a large portion of their income from Social Security. If you discover yourself in this position, you need to make them as huge as viable. 

How to increase Social Security checks?

Make sure you have a 35-year work history

This is probably the most important step, but if you’ve been out of work for a few years, it will be hard. Your Social Security retirement benefits are calculated with respect to your best 35 years of earnings.   

If you have less than 35 years of work history, the missing years will be recorded as zero earnings, which could really cut back your benefits. So close as you can get to the years before that will be very beneficial to those with gaps.  

People who love retiring early get it all the time, but working until you have at least 35 years’ earnings there can be to your benefit. But part-time work can also count towards your earnings history if you are unable or unwilling to work full-time.

Verify the accuracy of your earnings record

The Social Security Administration (SSA) may lower your benefits since it determines your benefits based on your recorded earnings history and any inaccuracies in these records count.  

You want to prevent this, so periodically check your Social Security earnings statements online from the SSA. Report discrepancies, such as unreported earnings, immediately and get them fixed.   

Delay claiming Social Security benefits until age 70

For people born in 1960 or later, the FRA for Social Security benefits is age 67. But there’s one thing you can do to increase your monthly benefit: delay applying for your benefit after your FRA. The longer you wait, up to age 70, your benefit increases by about 8%. 

Conclusion

Finally, planning for a secure retirement means paying attention to Social Security benefits and also to proactive savings. Since so many Americans have little retirement savings by their 60s, a lot of importance can be attached to maximizing Social Security benefits in ensuring financial stability.

Increasing your monthly payouts can be dramatically helped by maintaining a 35-year work history, checking your earnings record regularly for errors or omissions, and delaying benefits to age 70.

If you don’t have enough personal savings to retire comfortably, taking these steps can help future retirees lock in the more comfortable retirement plan that is possible. Thoughtful planning today can pay off a great deal in tomorrow’s financial well-being.

FAQs