You’ll often hear that you shouldn’t plan to retire on Social Security. This is good advice in general.
The average seniors collecting on Social Security today $1,665 per month. And that’s not a lot of money to live on.
On the other hand, some old people raise a lot of money social Security monthly basis. The highest monthly interest available this year is $4,194.
In fact, if you’re collecting the maximum monthly Social Security benefits, you may not need to use your savings as much to cover living costs. This is especially true if you live a somewhat frugal lifestyle.
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But what if you are still working and planning to retire? How do you know if your monthly benefits will be closer to the average of $1,665 or the maximum of $4,194?
the answer? If you have many years of work ahead of you, it can be difficult to get an instant estimate of your future benefits. But you can at least get a soccer field personality and work from there.
Easy way to get this number
The Social Security benefit you are entitled to in retirement is based on your salary within 35 years of your highest paid job. From there, there is a special equation that is used to calculate the rather complex benefits. So instead of doing all that grinding, create an account at SSA.gov And access your annual earnings statement. This document will include an estimate of your future Social Security benefits.
Of course, if you’re in your 30s or 40s and only halfway through your career, this estimate may not be entirely accurate. This is because your earnings may grow as your career progresses, and also, because at this point, you won’t have a full 35 years of business under your belt. But if you check that estimate, you’ll at least have an idea of the benefit you might be willing to reap.
The only step you will need to take to get the maximum monthly benefit
To get the maximum monthly Social Security benefits, you’ll need to have been a high-income earner for at least 35 years. but that is not all. You will also need Delaying your Social Security deposit up to the age of 70.
You are entitled to your full monthly benefits when you reach your full retirement age (FRA), which if you were born in 1960 or later, is 67. If you were born earlier, your FRA is either 66 or 66 and a specified number of months. But for each year you delay your filing beyond the FRA, your benefits increase by 8% on a permanent basis, up to age 70.
Now you may not earn enough during your career to get the maximum monthly benefit. But even if you do, registering with FRA will not be enough. Instead, you’ll need to hold off until your 70th birthday.
Should you aim for maximum monthly interest?
There are some steps you can take to make more money from Social Security, such as delaying enrollment. But you may not be able to control how much you earn, which may limit your ability to get the most benefit.
Instead of worrying about it, focus your energy on building a nice retirement nest to supplement your Social Security income. Most seniors don’t end up getting maximum monthly Social Security benefits — and unless you’re a high-income earner, it’s fair to assume you’d fall into that category. But if you’re working on building a solid egg, you’ll put yourself in a position to enjoy retirement to the fullest — even if your Social Security checks are less than the maximum you can collect each month.
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