Figuring out when to start getting Social Security benefits is likely one of the hardest things that people who are getting close to retirement have to do. For many, retirement is the light at the end of the tunnel. But what if the light wasn’t the safe green light we all expect? What if it was a warning siren?
Most retirees don’t have much saved, and many people aged 50 and up don’t have enough saved for retirement. Because of this, the decision of when to retire needs to be well thought out and take into account your financial needs, your physical needs, and your ability to keep working.
One reason to retire young is to have more years to enjoy life without working before your health starts to get worse. You can also spend more time with family and friends. But there are also problems with this, and many of them have to do with money.
When it comes to benefits, people who retire as early as possible (62 years old) get 30% less than people who retire at their full retirement age.
On its website, the SSA says, “The maximum benefit depends on when you retire.” For instance, if you reach full retirement age in 2024 and retire, the most you can get is $3,822. The most you could get, though, is $2,710 if you retire at age 62 in 2024. In 2024, if you retire at age 70, the most you’ll get is $4,873.
There is a big difference, and most people don’t even meet the requirements for this top check.
How to get the Social Security maximum retirement benefit
It doesn’t matter what age you retire at; the most important thing to get the most out of your retirement is to have paid the most in Social Security payroll taxes for at least 35 years. Any years you didn’t work will be lost, and any years you contributed less than the maximum will keep you from getting the maximum benefit.
People who have been high earners since the start of their careers might not be interested in this program. However, many of us should think about working longer if we have any zeros in our records or if our first contributions were too low and we need to make up for them later on.
You might get a bigger benefit if you do this, but it doesn’t mean you’ll get the most money from Social Security. One thing that does is wait until age 70 to start getting benefits. This biggest benefit won’t be yours if you file your claim early.
Even if you haven’t made the most in taxable income over the course of your career, you should still wait as long as you can before starting to get benefits. If you can wait until you reach full retirement age, that’s ideal, but any time after that will give you a bigger benefit.
A lot of people think that retirement is a done deal, but just because you quit your stressful full-time job doesn’t mean you have to never work again. You can keep building your benefits while still having a more leisurely life by consulting or getting a part-time job.
Just look at the fact that the average retirement check in 2024 was $1,907; this means that most people don’t even come close to getting the most they can in retirement. If there is anything you can do to tip the scales in your favor, it will be good when making money isn’t the most important thing for you.
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