5 Social Security Secrets For Even Bigger Checks Personal finance
Pop quiz! What is the average amount of Social Security retirement benefits? Do you know? Do you want to guess? It was recently $ 1,559 per month, or about $ 18,700 per year. If that doesn’t sound like a lot to you, you’re right, it isn’t. Consider, for example, that the federal poverty line for individuals in 2021 is only $ 12,880, and the threshold for couples is $ 17,420 – not far from that average Social Security benefit. In truth, Social Security only provides about 40% of pre-retirement income to those with roughly average incomes.
Obviously, anything we can do to increase our benefit checks will be worth considering, especially the things that are best done long before you retire. Here are five ways to boost those benefits.
1. Work longer
For starters, consider working longer than expected, if you can. This offers multiple advantages: on the one hand, the longer you work, the shorter your retirement will be, which means that your nest egg will have to support you for fewer years. Working longer also means you may be able to save more money for retirement.
You will also be able to stay on your employer’s health care plan longer, which could save you a lot of money. (Remember that for many people, health care costs are one of the biggest expenses in retirement.)