Your Social Security Benefit May Be Bigger Than You Think: Here’s Why
- Author: Russell Sawayn
- Posted: 2024-06-06
Many Americans rely on Social Security for financial support in retirement, but there are several factors that can increase your benefits beyond what you might expect.
Understanding these factors can help you maximize your Social Security income and secure a more comfortable retirement. Here’s what you need to know about potentially boosting your Social Security benefits.
Delayed Retirement Credits
One effective way to increase your Social Security benefits is by delaying your retirement.
If you wait to claim benefits until after your full retirement age (FRA), you can earn delayed retirement credits.
For each year you delay up to age 70, your benefit can increase by about 8%. For instance, if your FRA is 66 and you wait until 70, you could see a 32% increase in your monthly benefits.
High Lifetime Earnings
Your Social Security benefits are calculated based on your highest 35 years of earnings.
If you have high earnings over a long career, your benefits will be larger.
The Social Security Administration (SSA) adjusts your earnings for inflation, ensuring that your benefits reflect the value of your income over time.
Maximizing your earnings during your working years can significantly boost your benefits.
Spousal and Survivor Benefits
Social Security also provides spousal and survivor benefits, which can increase your household income.
A spouse can receive up to 50% of the higher-earning spouse’s benefit.
Understanding these benefits can help couples strategize to maximize their combined Social Security income.
Government Assistance Programs
In addition to Social Security, other government programs can provide financial support.
The Supplemental Security Income (SSI) program offers additional income for eligible individuals with limited income and resources.
Additionally, the Low Income Home Energy Assistance Program (LIHEAP) helps low-income households manage their energy bills, freeing up more of your Social Security income for other needs.
Conclusion
By delaying retirement, maximizing your lifetime earnings, and understanding spousal and survivor benefits, you can significantly increase your Social Security income.
Coupled with other government assistance programs, these strategies can help ensure a more secure and comfortable retirement.
Take the time to explore these options and plan effectively for your financial future.
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