This month’s Social Security benefits may be higher than usual for some beneficiaries, but they have to fulfill certain standards. Monthly income in the United States varies greatly, and some retirees may receive a sizable rise in their Social Security benefits in September. Pensions for retirees can range from less than $24,000 per year in some jurisdictions to over $24,000 in others. A person’s income depends on a number of factors, including their place of residence and prior wages. Because of this, certain states are notable for giving retirees checks that are bigger than those in others, and it’s critical to comprehend the factors that led to this variation.
Strategies to Maximize Your Social Security
While you cannot modify your job history, there are ways to boost your Social Security benefits. Here are three important tips:
- The 35 years with the highest income are used to compute Social Security payments. Any years you haven’t worked for 35 years or more will be counted as zero, which will reduce your benefit amount. Thus, the best way to maximize your Social Security benefits is to work for at least 35 years.
- You will receive a larger Social Security benefit the more you earn. Your income determines how much you pay in Social Security taxes, and a higher salary translates into bigger benefits. Nevertheless, the maximum amount of your income that is subject to taxes is $168,600 in 2024. This implies that your Social Security taxes and benefits will not increase if you earn more than this amount in a given year.
- When it comes to Social Security, timing is crucial. As early as age 62, you can begin claiming benefits, but doing so may result in a 30% decrease in your monthly payout. On the other hand, delaying until after your full retirement age (FRA), which varies based on your birth year from 66 to 67, can result in a sizable payment rise. Up until the age of 70, your check will increase by 8% for each year that you wait to begin claiming benefits after your FRA.
