Inflation has caused the value of money to become less, which has resulted in Social Security and retirement amounts to be worth even less.
Social Security is sent to seniors on a monthly basis as well as disabled and low income individuals.
Each year the amount is adjusted to keep up with inflation, but this year the COLA increase was 5.9% and inflation rates are past 8%.
There are three ways you can work to make sure you get the most money possible when claiming Social Security benefits
You can start by increasing your salary if possible.
Your benefits are based on your 35 highest earning working years.
Benefits are designed to only cover 40% of your previous income.
You can boost your yearly income by working side jobs, working overtime, or getting a raise.
Another way to benefit yourself is working more than 35 years.
If you worked 40 years but started at a lower salary the first 5 years, those wouldn’t pull your average down.
These higher earning later years would replace those years.
Finally, the amount you get depends heavily on the age you are when you retire.
If you retire as soon as possible at age 62, you could see as much as a 30% decrease in monthly benefits.
If you retire at your full retirement age, you will see 100% of your benefits.
Retiring at age 70 will bring you up to 8% more for each year between your full retirement age and 70.
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