Personal finance and retirement experts highlighted a strategy that could possibly increase Social Security benefits significantly by up to $11,664 a year.
Millions of older adults rely on Social Security once they retire, with about 37% of men and 42% of women in 2023 depending on their benefits, according to the Social Security Administration.
A LOOK AT WHAT PROGRAMS COULD BE AFFECTED IF THE US DEFAULTS ON ITS LOANS
The age at which a recipient begins to claim payments greatly affects a person’s Social Security benefits. After the age of 62, filers can apply for Social Security, but they must wait until they hit their full retirement age, which depends on their birthday.
The key is to wait to collect benefits until after hitting the full retirement age, which can be up to age 70. This will ensure older adults can collect their full benefits and an additional bonus of at least 24% per month. By delaying, older adults can collect $2,232 per month, which can add up to $11,664 in a lifetime.
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As reported in March by the Social Security Administration, the average retired recipient collects about $1,800 per month from benefits. Assuming that is the amount collected prior to one’s full retirement age, the monthly payment would reduce by 30%, resulting in $1,260 per month. However, waiting until age 70 means collecting $1,800 per month and a 24% bonus.
Experts advise that there are specific situations in which collecting benefits early will be the right decision, such as being forced into an early retirement or dealing with health problems.
