3 Social Security Moves to Make Before the End of the Year

IIf you’re about to retire, you might consider claiming Social Security sometime in 2022. But even if that’s not your plan at all, it’s still worth checking these important Social Security tasks off your list before the end of 2021.

1. Find out your full retirement age

The Social Security benefit you are entitled to in retirement will be based on your earnings history — specifically, the amount of money you earn in 35 years of the highest wages in the workforce. Once you reach your full retirement age, you can get your benefits in full.

Social Security card.

Image source: Getty Images.

It is important that you know your FRA because you are allowed to claim benefits before accessing them. In fact, you can register for Social Security as early as age 62. But for each month you file prior to the FRA, your benefits will be reduced.

Knowing your FRA can help you better plan for retirement. It can also prevent you from claiming benefits too soon. Here’s what your FRA would look like, depending on the year you were born:

year of birth full retirement age
1943-1954 66
1955 66 and 2 months
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 or later 67

Data source: Social Security Administration.

2. Estimate your future benefit

In the course of your retirement planning, it will help to know how much monthly income to expect from Social Security. As we just learned, benefits depend on earnings and also on when you apply for them. But it may be helpful to get an initial estimate of the monthly benefits you are entitled to. Your annual earnings statement is a great place to access this information.

You can find your earnings statement by creating an account at SSA.gov – although if you are 60 or older, you must receive these documents by mail.

One thing you should know is that the closer you get to retirement, the more accurate your benefit estimate will be. By contrast, if you’re in your 40s, the number you see on screen might be pretty cool, because a lot can happen in terms of wages between now and the time of retirement. But still, it never hurts to have an idea of ​​what income you might be at the same level.

3. The fight to increase

What does getting a premium have to do with Social Security? Much. The more money you earn during your career, the more interest you may qualify for once you retire.

If your employer does not offer a salary increase until 2022, you may need to be proactive about asking for a raise. Look up the salary history for your role and industry and see if you can prove more money. Remember that a lot of companies are dealing with labor shortages these days, so your employer may be more flexible in the payroll department than you expect.

Social Security might not be something you think of unless you’re about to retire. But it’s still a good idea to know your finances law, estimate your future salary, and keep fighting for higher earnings with the hope that one day you’ll be in line for a more generous benefit.

The $16,728 Social Security bonus is totally overlooked by most retirees
If you’re like most Americans, you’re behind on retirement savings for a few years (or more). But a few little-known “Social Security secrets” can help ensure a higher retirement income. For example: One easy trick can pay you up to $16,728 extra…every year! Once you learn how to maximize your Social Security benefits, we believe you can retire with confidence with the peace of mind we all seek. Simply click here to discover how to learn more about these strategies.

Motley Fool has a disclosure policy.

The opinions and opinions expressed here are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.

Leave a reply:

Your email address will not be published.