You contributed (and may still contribute) to Social Security through your payroll or self-employment taxes while you worked. This entitles you to a certain benefit. Uninformed people don’t know they are accepting less than they should from the Social Security Administration (SSA).
Are you taking these steps to increase your profits?
1. Work enough years
SSA will look at your 35 highest earning years. If you are under 35, each year without work will be $0 on that average.
Many don’t know that even if you’ve already started receiving benefits, you can still work up to a limit. If your annual earned income after retirement is one of the higher 35 years, or if you are taking your spouse’s benefit because you did not have enough years worked, your payment may increase.
2. Work until full retirement
The full retirement age varies depending on the time of birth. You are allowed to start collecting before your full retirement age. But this reduces your lifetime payments by as much as 25% to 30%.
3. Have an “Early Retirement” Plan
Depending on your career, working into full retirement can be difficult. So he creates a Plan B, a job he could slip into at age 60 if something forced him into “early retirement.”
4. Claim your spousal benefits
The SSA recognizes that sometimes spouses divide responsibilities unequally as partners with one spouse earning most of the money. If you are a spouse who earns less money, you may qualify to receive up to 50% of your partner’s benefits for as long as they live. You must be at least age 62 (in 2022) to qualify for a spousal benefit, however benefits are reduced when taken before full retirement age.
5. See if you qualify for dependent benefits
If you retired but have a dependent under age 19, the dependent may qualify for up to 50% of your benefit. This would be in addition to the benefit she already claims.
6. Keep a side job but keep an eye on your earnings
Once you start claiming Social Security, you can still earn some income without affecting your benefits. In fact, this is one way many people can “increase” their Social Security. If you are in relatively good health, you have many options. Plus, continuing to work can be great for your mental and physical health.
With that being said, you need to keep track of how much you are earning. Do not exceed the limit or you will reduce your benefit.
That being said, the limit is generous.
In 2022, you can earn up to $19,560/year if you’re early and $51,960/year if you’re past full retirement age.
Wondering what kind of work you could do? According to US news and world reportsSome of the main jobs that “retirees” take on are:
- Teacher/Tutor/Teacher Assistant
- Administrative assistant
- Health and Personal Care Assistants
- Real estate agent
- Sales
- Driver
- Child care and adult care with special needs
- Consultant based on the career from which you retired
Most of these offer you some flexibility in how much you earn and allow you to work part-time or part of the year. Many retirees do.
7. Beware of tax brackets
Just getting into a higher tax bracket will mean bringing home less money. So know where the next support is.
8. Check Survivor Benefits
If your spouse or ex-spouse is deceased and had a higher benefit than you, you may qualify to receive your benefit instead of the lower one.
As a side note, if your spouse is living and planning to take voluntary early retirement, the two of you may need to factor that into your retirement plan.
9. Know your rights
You have the right to dispute your Social Security statement if it does not accurately reflect your earnings. Check those numbers every year. It is better not to wait. You may no longer have supporting documentation if you do. You can create an account at SSA.gov to view your income history.
You also have the right to stop your benefits. If you think you made a mistake applying for early retirement, you can pay that money back, stop benefits, and start collecting after full retirement age. However, you must do this within one year of benefits starting.
Bottom line
You paid in a system and you deserve to receive what corresponds to you. Follow these steps to increase your benefits.
