Maximizing your social security benefit puts more money in your pocket where it belongs. Despite many individuals assuming their benefit amount is set in stone, putting a few simple strategies to work is all a person needs to maximize their monthly benefit amount. Neon Funding offers the following tips for maximizing social security benefits.
1. Earn More Money
Increasing income is the simplest strategy for increasing social security benefit amounts. The amount of earnings used to calculate retirement plans differs each year. In 2019, earnings of up to $132,900 are counted. Whether you raise money, earn it from a part-time gig, or increase salary at your current job, making more money is the key to larger social security benefits.
2. Include the Kids in the Claim
Dependent children under age 19 qualify social security recipients to payments worth up to half of their full benefit amount. Limitations do apply and eligibility must be verified for all dependents living in the home at the time of retirement.
3. Retirement Income
Although social security recipients can earn money during retirement, they cannot earn more than an amount specified by the Social Security Administration (SSA.) If they do, $1 is withheld for every $2 they earn above the limit. This amount changes each year. In 2019, social security recipients earning more than $17,640 were subject to the penalty. Keep up-to-date with current amounts to ensure you do not earn more than allowed by the SSA.
4. Wait to File for Social Security Benefits
Life is one big waiting game, isn’t it? Now is the best time to play that game. Retirement benefits increase every year that you do not file, up to age 70. Although the current retirement age is 66 years, two months, holding off to file for benefits can increase the amount of approximately 8%. There is no additional amount for retiring after age 70.
5. Work Longer
Social security benefits are calculated using the 35-years of work history during the periods when most money was earned. If you work an entire 35-years before filing a social security claim, you’ll earn more money in monthly benefits. It may seem like a long time, but it is worth all of the hard work at the end of the day!
6. Minimize Social Security Taxes
The amount of money that you earn is important in calculating your social security taxes. Individuals earning more than $25,000 and couples earning more than $32,000 could find up to 50% of their benefit taxable! Earn more than $34,000 ($44,000 for couples) and a steep 85% tax could be taken from your monthly benefit. Find all appropriate strategies necessary to minimize the taxes that you pay into the social security administration!
7. Be Informed
Check your social security statement at least once per year. Make sure that your earnings history and taxes have been recorded correctly by the SSA. Mistakes can and will happen and can impact you in many ways. You want to ensure that you get credit for the taxes that you pay. Keep an eye on this information. Setting up an account with My Social Security is the best way to monitor this information. There’s no cost to register for an account or to access your information. It is a quick and simple idea that keeps you up-to-date and within reach of an SSA agent who can answer questions or better serve your needs.
8. Understand Social Security Benefits
Far too many people fail to understand social security benefits and as a result, miss out on money they would qualify to receive. You can receive benefits not only for yourself but spouse and minor children too, as described here. However, the benefits that you may be entitled to receive is far greater than what is included on this list. Talk to an SSA representative and utilize family to help get the benefits you’re entitled to receive!
9. Educate Yourself
While educating yourself concerning the many different social security benefits available is important, you shouldn’t stop there. Educate yourself now concerning the best retirement strategies. Invest in a 401(k) or similar retirement plan. Take retirement seriously even while you are still young and thrive later on in life. Far too many people feel that they have their entire life ahead of them and put off thinking about retirement. Life is far too short to make the same mistake when a bit of education helps you understand Social Security and how to maximize your benefit amount.
Maximize Your Social Security Benefits With This Information
Social security benefits are a part of any retirement plan. Learning the most effective ways to maximize your social security benefits now certainly pays off later, helping you get the most money after retirement. You’ve worked hard to enjoy your golden years and should be able to do that without worry or wonder or working a part-time job! Make sure that you can do just that with the information provided here courtesy of Neon Funding.
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