According to CNBC, as of June 2024, retired workers received an average monthly Social Security payment of $1,918.
Many retirees depend on this payment, often as their primary source of income. They rely on it to cover essential expenses like healthcare, food, and housing. If you’re one of these retirees, you might feel the social security benefits are too low.
The money might be inadequate to cover your rising living expenses. So, what can you do to overcome this financial challenge? Here’s how to get an extra social security payment.
Work During Retirement to Increase Benefits
Your income can increase your benefits if you work after claiming Social Security. Social Security will recalculate your benefits based on your new earnings. Doing so could raise your monthly payments.
This is especially beneficial if you are still in good health and can work. Part-time or remote jobs can be a great option for retirees living in assisted living communities. Consider roles such as customer service representative, tutor, or virtual assistant.
These jobs allow flexibility and can be done from home or within the community, reducing the need for travel. In some cases, even working part-time in a local store may boost your retirement income. Continuing to work increases your lifetime earnings, which can positively affect your Social Security benefits.
Wait Until FRA to Claim Social Security Benefits
Full retirement age (FRA) is between 66 and 67, depending on your birth year. At this age, you’re eligible to receive your full retirement benefit without reductions.
According to the United States Social Security Administration, retiring as early as age 62 can reduce Social Security benefits by up to 30%. This decrease can impact seniors’ long-term financial security. Waiting until FRA maximizes your benefit, giving you a lifetime retirement income boost.
It’s a valuable way to ensure higher Social Security benefits if you can delay retirement. Delaying benefits past FRA can increase the amount for those who want additional payments.
The boost can significantly increase your monthly income, especially if you rely heavily on Social Security. The extra income can cover your daily expenses, providing greater financial security in retirement.
Suspend Benefits Temporarily
If you start benefits early but later decide to delay them, you can suspend payments. This allows you to earn delayed retirement credits, increasing your monthly payment when you resume benefits.
To suspend your benefits, you must be at full retirement age. You can resume receiving payments at any time. By suspending benefits, you effectively delay your claim to a higher monthly amount.
This strategy works best if you have other sources of income to rely on. Suspended benefits can also help if you want to maximize the amount you qualify for later.
Adopting this strategy can be a smart way to ensure financial security for seniors. Delaying your future monthly payments for a few years can increase your monthly payments. This is especially beneficial if you’re in good health and have low living expenses.
Utilize the Spousal Benefit
To qualify for Social Security spousal benefits, your spouse must already be receiving retirement or disability benefits. The amount you’ll receive depends on:
- Your age at the time of claiming
- Your spouse’s full benefit amount
- Your own work and earnings history
- Whether you’re receiving a pension from non-covered employment
- The age difference between you and your spouse
According to Investopedia, the maximum spousal benefit is 50% of your spouse’s full benefit if claimed at full retirement age.
Divorced spouses can also qualify if the marriage lasted at least 10 years. They must also be currently single to qualify. Spousal benefits are a valuable boost to retirement income, especially for individuals with limited earnings.
Reduce Social Security Taxes
If you continue working while receiving benefits, your Social Security benefits may be taxed. To reduce your taxes, you can increase your deductions and use tax-efficient strategies.
One way to reduce taxes is by contributing to tax-deferred retirement accounts. This lowers your taxable income and delays tax payments. For example, contributing to a traditional IRA or 401(k) can lower your income and reduce the amount of Social Security benefits subject to tax.
Another option is to ensure you only earn income that doesn’t exceed the threshold for taxing Social Security benefits. The income threshold for taxing benefits depends on your filing status. If you earn too much, some of your benefits may be taxed.
Maximizing deductions and managing your income wisely can lower your tax liability. This will help preserve your benefits and ensure more money is available to meet your needs.
Claim Survivor Benefits
If your spouse passes away, you may be eligible to receive their Social Security benefits. These benefits can be claimed if you meet certain criteria, such as having been married for a specific period before their passing.
By qualifying for these payments, you help ensure your financial security as you age. These benefits can relieve financial strain for seniors in an assisted living community. Increasing your Social Security payment can also help you afford your community’s incredible amenities.
Review Your Social Security Statement for Errors
Mistakes in social security statements affect the financial security of seniors. Missing or incorrect information can result in lower payments. Regularly checking your statement helps guarantee that all your earnings are properly recorded.
If you find any errors, contact Social Security right away. Submitting the correct paperwork can help correct mistakes and protect your financial security for seniors. By quickly addressing errors, you increase your chances of qualifying for payments based on your full earnings record.
Get Help to Secure an Extra Social Security Payment
Explore options like delaying your claim or working longer to get an extra social security payment. This can boost your monthly benefits. Review your Social Security statement for errors to ensure accuracy.
Increasing your Social Security payment can help cover living expenses if you live in an assisted living community. Rittenhouse Village at Northside offers various resources to help seniors with financial concerns. The community’s support can help you live comfortably while enjoying all the amenities.
Contact us today to learn more about how we can help you.
