How I Increased My Social Security Benefits: A Personal Guide
Hello there! If you are like me, then at some point you must have contemplated on when it is best to take out your social security benefits. It was really a foggy road for me to make this decision. However, there are a few strategies which can boost our benefits that many people do not know about. That is what I am here for today; I want to tell you the things that I have found out so that you too can optimize your use of social security.
My Journey with Social Security
I cannot emphasize enough how much of a daunting task it is to figure this out; when should one claim their social security? It turns out that the age at which you begin claiming has a big impact on how much money you shall receive monthly. Social Security calculates its benefits based on the average earnings of an individual’s highest 35 years and the age at which they start receiving them.
For those born in 1960 or later, the full retirement age is 67. You will only get 70 % of your PIA if you start taking these benefits at the minimum age allowed (62). But if someone waits until they turn 70, they will be given 124 % of their primary insurance amount. To put this in perspective, if someone’s PIA is $1,984 and they claim it once they turn 62; every month they would receive about $1,389 while waiting until one hits seventy means having $2,460 per month. Which could give us almost an additional $12,852 yearly or another thousand dollars every month!
The Social Security Do-Over Option
I wish I had known about this sooner but better late than never right? You can do a Social Security do-over which is great news for you! Just fill out the Form SSA-521 within one year since your initial claim. Only, you must remember that to proceed with this option you have to reimburse all benefits, as well as any deductions from your payments for spouse benefits or Medicare premiums.
The whole process of doing this starts again by applying at a later date hence earning delayed retirement credits that may significantly hike monthly benefits. If you would have claimed at age 62, but instead decide to wait until 70, your benefit might go up by 77%.
The Social Security Suspension Option
Here’s the good news if it has been more than twelve months since you began taking your social security: there is still a way of increasing the amount someone will receive in future times. At full retirement age, you can suspend your benefits temporarily and gain some extra time before collecting retirement benefits. The increase amounts to about two-thirds of 1% for each month suspended which when added up is about 8% per annum.
Simply get in touch with the Social Security Administration either on phone or through writing. In case no action is taken on your part before then, come day 70 they will automatically start up again. However, note that suspending benefit does not reinstate early claiming reductions and any spousal benefits based on this record are also interrupted.
My Personal Advice on Claiming Strategy
There are many things to consider before making up your mind on when to start receiving Social Security benefits including but not limited to health, financial needs and other sources of income. Most research advises individuals to wait until at least age 70 in order to maximize lifetime benefits assuming normal life expectancy. It is important for each person to know their own circumstances so that they can decide the best option.
Putting It All Together
Understanding about the do-over and suspension plans can change the game completely. These tactics enabled me to come up with a plan that ensured I would get the most out of my social security benefits. This is an experience I want others to gain from as well.
If you’re in doubt about these options, consult a financial planner or even a social security representative for guidance. They will give you personalized advice so that your tactics harmonize with your retirement plan at large. With some forethought and proper approach, one can take advantage of his/her entitlements towards having a more stable future after working life; may we all make the most out of our social security!
Mary Thompson a 65-year-old journalist, enjoys writing for SeniorsDeal.com. With years of experience in content creation, she shares valuable insights for seniors. In her free time, Mary loves gardening, reading mystery novels, and exploring new travel destinations. She’s passionate about helping fellow seniors find the best deals and products for their retirement.
