Seven Tips to Boost Your Social Security
How much you receive in Social Security depends on your wage history and at what age you start collecting benefits. Here are things you can do to make sure that you receive as much Social Security as possible.
1) Wait as long as you can to collect your benefits. If you were born between 1943 and 1954, then you can collect your "primary insurance amount" at age 66. If you were born between 1955 and 1960, then you can collect your "primary insurance amount" at age 66 and a few months. You can start claiming benefits at age 62, but if you do, your benefits will be cut by 25% compared with what you would receive if you waited to claim at age 66.
For example, let us say that at your full retirement age of 66 you will be owed $2,000 per month. If you claim at age 62 instead, then you will receive $1,500 per month.
2) Better yet, wait until age 70 to claim benefits. After your full retirement age, benefits increase by 8% each year that you wait to claim them. Using the above example, if you wait until age 70 to collect, then your benefit will increase to $2,640, which is 76% more than taking the benefit at age 62. Plus you will receive a higher cost of living increase each year.
3) Work at least 35 years. Social Security is calculated based on the 35 years in which you had the highest earnings. If you have not worked for 35 years, then the years in which you did not work are factored into the equation. This lowers the amount of benefits you will receive.
4) If you are married, claim spousal benefits. Spouses may claim benefits based on their own work earnings record or up to 50% of the higher earner's benefit, whichever is higher. If you were married for at least 10 years, then you can also claim Social Security benefits based on an ex-spouse's work record.
5) If you are married, claim and suspend benefits. The higher earner must reach his full retirement age and file for benefits first. He then requests that the benefits be suspended. This allows the lower earner to claim a spousal benefit and the higher earner to continue working and earn delayed retirement credits until age 70, which will increase his payout.
6) If you are married, claim benefits two times. At your full retirement age, claim only spousal benefits and continue accruing delayed retirement credits. Then file for benefits based on your own work record at a later date and receive a higher monthly benefit thanks to the 8% increase in benefits each year after your full retirement age until age 70.
7) Check your Social Security statement annually to ensure that your earnings and Social Security taxes are being recorded correctly. The government has been known to make mistakes.
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