There’s a reason so many people want to get as much money out of Social Security as possible. Saving for retirement can be difficult.
It’s hard to part with money when you need it to cover other bills, for things like food, transportation, and rent or mortgage. And it can be especially hard to allocate money to retirement savings when your near-term needs are barely being met.
As such, many people end up having to rely heavily on Social Security in the absence of retirement savings. And if you think that’s a situation you’ll end up in, planning to delay your filing is a good bet.
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For each month you delay your Social Security claim past full retirement age, up until your 70th birthday, your monthly benefits get a permanent boost. But there’s another step you can take to boost your future benefits, and it’s one that might also help you a lot in the near term.
Boost your income with a new job
Today’s labor market is pretty solid. In January, the U.S. economy added 517,000 jobs, and the national unemployment rate fell to a mere 3.4%.
Because jobs are so plentiful, now’s a good time to go out and get a new one. Often, switching employers is an effective way to bump up your salary. And the higher the wage you earn, the more Social Security you can expect down the line.
It’s a big myth that Social Security pays all seniors the same amount of money. Rather, the monthly benefits you’re entitled to during retirement will hinge on how much money you make during your 35 highest-paid years in the workforce. So, if you’re able to snag a new job that comes with higher pay, you might set yourself up for more Social Security income in retirement.
But that’s not the only reason to pursue a better-paying job. There’s also your near-term comfort to think about.
Many people are struggling to keep up with their bills due to inflation. A higher salary could make it easier to cover your expenses.
Just as importantly, a higher wage could make it possible to more steadily contribute to a retirement savings plan. And that’s an important thing to do.
While there’s nothing wrong with factoring in Social Security as a big source of retirement income, it shouldn’t be your only source even if you do manage to boost your benefits by scoring a pay raise. Not only will Social Security only replace a pretty small portion of your wages (roughly 40% if you’re an average earner), but benefit cuts may be coming down the pike. So it’s important to have savings to fall back on in case Social Security doesn’t provide the amount of income you expect it to.
The more money you earn, the easier it becomes to fund an IRA or 401(k) and build yourself a solid nest egg. And that, combined with a larger set of Social Security benefits, could be your ticket to the financially comfortable retirement you want and deserve.
The $21,756 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $21,756 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Simply click here to discover how to learn more about these strategies.
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