New Change for Middle-Class Retirees in the US – Their Average Social Security Check Will Increase Starting This Date

By Allen

Published on:

New Change for Middle-Class Retirees in the US – Their Average Social Security Check Will Increase Starting This Date

It’s hard to figure out how to use Social Security because it’s a complicated system of payments. A lot of people close their eyes and hope for the best when they think about how much benefits they will get.

But that’s not a good way to plan your future. People who depend on this benefit to make ends meet after they retire need to be extra careful to plan ahead, since benefits aren’t meant to replace income.

Based on information from the U.S. Census Bureau from 2022, the national middle-class income range is between $49,271 and $147,828 and the median household income that year was $74,580, a 55-year-old earning that much today and planning to start collecting Social Security at age 62 would likely get about $1,869 a month. That’s equal to $22,428 a year.

That sounds great as long as the retiree has other savings. But if they only depend on Social Security, it wouldn’t be enough to keep up a good standard of living in most parts of the country, especially since the U.S. Department of Health and Human Services says that the poverty line for one person in 2024 is $15,060.

People who are still working and can afford to make better plans don’t have to give up hope. There are several ways to increase Social Security benefits.

Delay claiming Social Security benefits

Leaving your job early may seem like a dream, but it can quickly turn into a nightmare. Most people should not retire and start getting benefits at age 62, which is the earliest possible date.

When you turn 65 and Medicare starts, your benefits will likely go down and your medical costs will probably go up.

The best outcome will happen if you wait until you are 70 years old to start collecting benefits. To be able to wait, either save money for retirement or look for a less stressful but still rewarding job.

New Change for Middle-Class Retirees in the US – Their Average Social Security Check Will Increase Starting This Date
Source (Google.com)

Explore other investments and savings vehicles

Similar to this, you might want to spread out your investments and maybe even risk some money that you don’t mind losing. Maximizing your Social Security benefits is important, but because they have limits, you should only do it as part of a bigger plan for your retirement.

To add to their benefits, middle-class retirees should also look into other ways to make money, like part-time jobs, rental income, and investments.

 

Consider the tax consequences

People who only get Social Security benefits and have no other income don’t have to pay taxes on them. But since that’s not the goal, you will probably have to pay taxes on some of your benefits, at least at the federal level (most states don’t have Social Security taxes).

It’s important to know how other income sources, like pensions or investment withdrawals, affect how your benefits are taxed. This will keep you from getting bad surprises later on. Planning your withdrawals well may also help you pay the least amount of taxes possible.

Investing

These days, investing doesn’t just mean stocks. The real estate market has always been a good place to put your money, especially if you want to spread out your assets.

Some people might not like being a landlord, but you could always rent through an agency if you don’t want to make money off of the rent and just want to sit back and watch the property go up in value. They will get paid, but they will also handle most of the work for you.

Saving

Don’t forget about your savings accounts. Investing is fun, but you can’t get your money back when you need it. Having some of your money in a high-yield investment account will make it much easier to get it back when you need it. There won’t be any extra taxes to pay or steps to take, but you will still have to wait.

Read Also :- Taxes on Social Security Checks Starting in 2025 – Here’s How It’s Calculated and How It Will Directly Affect Your Pocketbook


Disclaimer- We are committed to fair and transparent journalism. Our Journalists verify all details before publishing any news. For any issues with our content, please contact us via email. 

Recommend For You

Leave a Comment