Social Security contributes a major chunk to the incomes of retired senior citizens in the US. While the average amount they receive is around $1557 per month, the claims can go as high as $3895 if managed well. Read ahead to know how you can ensure to receive a sum of $3895 every month when you retire.
Number of working years
Social security administration uses the average of 35 years when you were earning your highest. The number is then adjusted for inflation for making further calculations. The years you were unemployed will result in lower-income levels and thus lower social security. So you need to ensure that you stay employed for at least 35 years in your career.
For maximum benefits, you need to consistently earn more than the SSA’s maximum taxable earnings. In 2021, the limit is $142,000 per year. The amount keeps on changing every year to account for inflation and thus increased living costs. It’s not necessary that you achieve this figure consistently. People who earn a lot more in later years can still set themselves up for maximum benefits.
The right time to file for benefits
As per the law, you are eligible to receive benefits starting from the age of 62. However, if you can wait a little longer, then you can collect more money per month than you otherwise would. The choice of the waiting period is a personal one. Like a person who’s eligible to receive the maximum benefits would receive only $2324 per month if they decide to file for benefits as soon as they turn 62. However, a person who decides to wait until 70 would receive, yes you guessed it right – $3895 per month.
In the last phase of one’s life, when all potential sources of income are gone, social security proves to be a lifesaver literally. According to the Social Security Administration, a total of 65 million Americans received social security to the tune of $1 trillion in 2021. But to benefit fully from the schemes, you need to plan ahead. Like trying to avoid unemployment at any point in your career can help you ensure that you receive more benefits.