How To Beat The Average Monthly Social Security Benefits Of $ 1,565 | Personal finance


If you want to come away with a more generous social security benefit than the typical senior citizen, then you will have to earn more than the typical senior citizen. It is that simple. And you can achieve this goal in several ways.

First of all, you can improve your professional skills so that you have more chances of getting promotions accompanied by raises. Second, you can choose a side business or start a small business that allows you to earn income on top of your regular paycheck. Secondary income counts for social security purposes, and so the more you try to increase your total income, the higher you can qualify for a benefit.

2. Extend Your Career After Your Earnings Peak

You may end up earning your highest ever salary at the very end of your career. And in this case, working longer could lead to a higher benefit.

We just learned that Social Security takes your top 35 years of salary into account when determining your monthly retirement benefit. Say you are currently earning $ 100,000 per year, but your lowest income in those 35 years is a salary of $ 30,000. If you work another year with a salary of $ 100,000, this number will replace the salary of $ 30,000 in this formula. The result? A higher benefit for you.

3. Apply for benefits at age 70 (but not beyond)

Although you can register for Social Security from the age of 62, you will not be eligible for your full monthly allowance until you reach full retirement age, or FRA. FRA is between 66 and 67 years old, depending on your year of birth.

Source link


About Author

Leave A Reply