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What can you do now to add money to your future Social Security check? The truth is that there is no one-step process, but several small steps can ensure that your future Social Security check grows.
Here’s what experts say you can do to help add wealth in your golden years.
Perform annual verification of salary history
Your Social Security benefits are based on your last salary. If there is an error in the reported wages, you will want to fix it sooner rather than later to ensure you get the correct amount when the time comes.
“Every year you should check your statements to make sure your reported income and tax returns completely align,” says Travis Hoechlin, CEO and co-founder. Riseup MediaSaid. “Fixing the error quickly could prevent thousands of dollars in loss to employees.”
Increase income later in career
Your Social Security benefit amount is based on the highest paying years of your career. Tyler Denk, CEO behaviorThat said, earning more money in the last half of your working years is a smart move. “Even if you earned less money when you were younger (and therefore have lower salary years), you can replace those years with years in which you earn more income to increase the total amount you receive. The impact of these extra dollars will be much greater than the dollars you earn when you have been earning lower salaries in previous years.”
Delay benefit up to 70+
Although you can technically access your Social Security benefits at age 62, to get the most from your benefits, you should wait until age 70 to receive them.
“Waiting until age 70 to start (collecting) will give you the largest monthly check regardless of your previous career earnings,” Hoechlin said. “More likely, if you claim at age 62, you face a 30% loss over your lifetime compared to your full retirement age.”
live in harmony with your spouse
If you’re married, discussing when you’ll start using your Social Security benefits can be really beneficial. In this discussion, you can also talk about how each person’s income can help increase Social Security benefits.
“If you’re in your 30s or 40s, the higher earner should strive to earn as much money as possible, even if it means the other spouse takes a less lucrative job to increase your ‘income range’ as a family,” says Gary Gray, co-founder of couponchiefGave advice. “This way, lower earners know they will have a higher value check to fall back on, regardless of their own work history.”
