Social Security was created and signed into law in 1935 with t he goal of giving senior citizens checks beginning at the age of 62.
While these checks are to help seniors pay for their lives in retirement, the checks sometimes aren’t enough to cover their living expenses.
There are a few things that can be done to help make life easier before you apply for social security
Mae sure to save up and have a fund to pull from.
On average, social security is about 40% of your income from before you retired. Many believe it will be enough to live on before finding out it’s not.
Taking advantage of IRAs and 401ks will help.
Paying off loans before getting to the point of retirement is helpful as well.
Paying of debt like mortgages or car payments will eliminate monthly obligations.
Delaying your claim will get you more money in the long run. You can claim once you turn 62, but you’ll get far less than what you could if you wait.
Full retirement age is 66 or 67 depending on your year of birth.
If you wait even longer to age 70, you’ll get 8% more for each year between your full retirement age and 70.
If you boost how much you make throughout your income history, you will also make more in the long run.
The most you can make in a year caps off, and for 2021 is $142,800. Social security will take your 35 highest wage paying years and give you the average of that.
Finally, plan it out with your spouse. Figure out how much you will both be bringing home and plan for what you want to do during retirement.
It’s important to look into spousal benefits as well. Sometimes you get more by claiming half of your spouse’s benefits instead of all of your own.
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