People are frequently warned not to rely too much on Social Security during retirement. The reason is that those benefits will only replace a fraction of your regular paycheck.
However, there’s a high probability you’ll rely on Social Security to some extent if your employment ends and you’re no longer receiving a paycheck from your employer. As a result, it’s critical to enroll in benefits at the appropriate time to guarantee that your paychecks are as generous as possible.
However, you don’t have to wait until you reach retirement age to make efforts to increase your Social Security income. Here are three things you may do right away that could result in more significant benefits later on.
1. Increase your earnings
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How do you increase your income? You may, for example, concentrate on building competencies that will make you a more valued employee. That might easily result in a raise.
You might also try working a second job to increase your overall earnings. Even if you’re working as a freelancer, it counts for Social Security purposes as long as you declare it to the IRS (which you must do).
2. Advance your career
You may be reaching the end of your career and making more money than ever. If that’s the case, you have a great chance to increase your Social Security benefit.
If you prolong your career by a few years, you may use the Social Security formula to substitute a time of lower earnings with a period of greater earnings. Working a little longer at a higher salary may also allow you to add to your IRA or 401(k) plan, providing extra retirement income.
3. Review your annual earnings statements
Every year, Social Security releases a summary of all workers’ earnings and estimates their future benefits based on their income. Examining your annual earnings statement may result in a greater monthly benefit in the future.
Although earnings statements are frequently correct, this is not always the case. It’s conceivable that your income was underreported once or more.
If you examine your earnings statement each year and address any problems linked to underreported income, you may be able to get a larger benefit in the future. You may see your earnings statement at any time by visiting SSA.gov. In addition, if you’re 60 or older, you should get a copy of your earnings statement every year.
A greater benefit might be yours.
The more money you can get out of Social Security, the more comfortable your retirement. It pays to take these actions now to secure a greater monthly payout and have fewer financial problems later on.
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Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
