How to Score an Extra $1,830 per Social Security Check

(Christy Bieber)

The amount of Social Security benefits you receive can vary greatly depending on the decision you make. In particular, the year you choose to claim benefits can have the biggest impact on how much you get. In fact, you could increase your monthly income by up to $1,830 per month just by being smart when your first payment comes due.

Late claims can have serious consequences

You can get Social Security benefits at age 62. But if you want to get the biggest monthly paycheck, you’ll need to hold off on applying for benefits longer.

While the maximum monthly Social Security check at 62 is $2,364 in 2022, the maximum monthly benefit at 70 is $4,194 per month. Some quick math shows that an eight-year delay before claiming benefits increases your bill by $1,830 per month.

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Why does this happen? This is because of the way Social Security is structured.

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Seniors have the option of retiring and claiming benefits at a young age or at an old age. But Social Security’s goal is to equalize the amount that retirees receive, regardless of when they actually receive their first paycheck. As a result, the system of imposing early penalties and delaying pensions applies.

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Each pensioner is assigned a Full Retirement Age (FRA) based on when they were born. Those who claim in their FRA receive a standard benefit, which is calculated based on a percentage of their earnings adjusted for inflation in their 35 highest earning years of working life .

Anyone who starts monitoring before FRA is subject to a monthly prepayment penalty. And anyone who starts collecting checks after FRA can get late retirement credits that increase their monthly pay.

If you claim Social Security at age 62, your maximum benefit will be less because you will be hit with deferred pension credit every month between 62 and FRA. If your FRA is 67, the initial payment will be reduced by 30%. On the other hand, if you wait until 70, you’ll increase your deferred retirement credit and be on track for a bigger benefit — up to $1,830 more.

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How much can you increase your interest in deferment?

The $1,830 increase in your Social Security check is the biggest benefit increase you can get for deferring. Only if you were on track to get the maximum profit possible.

You’ll get this if you don’t earn the maximum amount of Social Security tax each year. Many people don’t have that much income, so the exact amount you can increase your check will depend on your personal interests.

For example, say you were on track to receive $1,600 in Social Security at full retirement age of 67. If you claimed it at age 62, that $1,600 would be reduced by 30% and will earn $1,120 per month. But if you waited until 70 and increased your deferred pension credit, you’d get $1,984 in cash. So your bill will be $864 higher. This is still a huge increase.

You can find your typical rate by checking your mySocialSecurity account online and then use that information to figure out how much a late claim could increase your bill.

Just remember, though, that when you put off claiming benefits for eight years to increase future payments, you’re giving up a lot of potential savings. Be sure to calculate how much time you’ll lose in arrears by estimating how many months of higher checks will be needed to make up for the lost income. This can help you make the right choice about the best time to claim your benefits.

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The $18,984 Social Security bonus is beyond the reach of most retirees

If you’re like most Americans, you’re a few years (or more) behind in your retirement savings. But a few little-known “Social Security secrets” can help boost your retirement income. For example: one simple trick can cost you over $18,984… per year! Once you know how to maximize your Social Security benefits, we think you can retire confidently with the peace of mind we all want. Just click here to learn more about these strategies.

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