Saving for retirement is one of the most important things Americans must achieve before applying for Social Security benefits. Currently, the average retirement savings balance for Americans across all age groups stands at $89,300. This figure, while not ideal, is understandable, as many people still have decades ahead of them to save for retirement.
However, it is troubling when examining the savings of people in their 60s, who have an average retirement savings of only $112,500.
Unlike younger people, people in their 60s are often nearing the end of their careers and have little time to grow their savings to a level that will allow them to enjoy a comfortable retirement. This situation indicates that many people approaching retirement age are likely to rely heavily on Social Security to cover their expenses. If you find yourself in this situation, maximizing your Social Security benefits becomes crucial.
How to increase Social Security checks?
Make sure you have a 35-year work history
This is probably the most important step you can take, although it can be difficult if you’ve been out of work for a few years-your Social Security retirement benefits are calculated based on your highest 35 years of earnings.
If your work history falls short of 35 years, the missing years will be recorded as zero earnings, which can significantly reduce your benefits, so getting as close to that year’s figure as possible will be very beneficial for those with gaps.
While many people prefer to retire early, working until you have at least 35 years of earnings can be beneficial. If you are unable or unwilling to continue working full-time, part-time work can also contribute to your earnings history.
Verify the accuracy of your earnings record
Since the Social Security Administration (SSA) determines your benefits based on your recorded earnings history, any inaccuracies in these records can result in lower benefits.
To avoid this, periodically review your Social Security earnings statements, which you can access on the SSA website. If you identify any errors, such as unreported earnings, report these discrepancies immediately and have them corrected.
Delay claiming Social Security benefits until age 70
The full retirement age (FRA) for Social Security benefits is age 67 for people born in 1960 or later. However, you can increase your monthly benefit by delaying your application beyond your FRA. Each year you delay, up to age 70, your benefit will increase by about 8%.