00:00tips to boost your social security payments social security benefits are a cornerstone
00:05of retirement for millions of americans but the average monthly benefit alone might not be enough
00:11to comfortably cover living expenses for many seniors while it's always advisable to have
00:17retirement income available outside of social security such as an individual retirement account
00:22or 401 plan securing larger monthly benefits from social security can significantly enhance
00:30your financial stability in your senior years the good news is there are several key moves you
00:36can make to potentially take home a lot more than the average monthly benefit here are three
00:41primary strategies to consider for boosting your social security payments one grow your wages while
00:47you're working the more money you earn during your working years it's the more social security you can
00:52receive in retirement up to a certain point social security benefits are calculated based on your
00:59earnings history there is an annual wage cap that determines how much of your income counts towards
01:05social security and is subject to social security taxes for example in the current year social
01:12security's wage cap is 176 100 earnings beyond this threshold will not result in larger future monthly
01:21benefits however if your income is below this cap increasing your wages can directly translate into
01:28higher social security checks if you currently earn 70 000 a year and manage to secure a promotion
01:35that boosts your salary to 75 000 this could lead to larger social security benefits in retirement
01:43similarly even padding your income with an extra three thousand dollars from a side hustle could result in
01:50more generous social security benefits down the line two work for at least 35 years your social
01:56security retirement benefit is based on your earnings during your 35 highest paid years in the workforce
02:04while you do you want necessarily need to work for a full 35 years to be eligible for social security
02:11failing to do so can negatively impact your benefit calculation this also holds true if you work more than 35 years
02:19especially if your income increases later in your career for instance if you reach your full retirement
02:25age which is 67 for those born in 1960 or later and you've already completed 35 years on the job
02:34working an additional 12 months could allow you to replace a year of lower pay with a year of higher pay
02:39thereby increasing your monthly social security checks if you don't have a 35 year work history a zero
02:46dollar will be factored into your benefits calculation for each year you didn't earn money however if you
02:52are willing and able to wait even longer delaying your social security claim can significantly boost your
02:57benefits for each year you delay claiming benefits beyond your fra your benefits increase by eight percent
03:05annually up until your 70th birthday these zero earning years can result in smaller social security checks
03:13conversely if you make an effort to work for at least 35 years you may qualify for larger social security
03:19benefits three delay your claim past full retirement age claiming social security at your full retirement
03:28age helps you avoid a reduction in your monthly benefits as you can sign up as early as age 62.
03:35of course there's a trade-off to delaying social security it might require you to work longer and if you
03:41don't live a very long life a delayed claim could potentially result in smaller lifetime benefits
03:48but if your health is strong and your goal is to receive a higher monthly social security payment
03:54holding off on claiming benefits is a guaranteed way to increase them money explainers
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