In a recent report, the Social Security Administration (SSA) emphasizes the natural inclination humans have to compare themselves with others, a trend observed from childhood to adulthood.
The Social Security Administration (SSA) delves into the comparison of Social Security benefits, shedding light on how retirees can surpass the average benefit for their respective age groups
Utilizing detailed data published by the Social Security Administration (SSA) in December 2022, the report presents a table illustrating the average benefits received by retired workers of various ages. It’s crucial to note that these averages have likely changed since then and will continue to fluctuate with the implementation of new cost-of-living adjustments in January 2024.
For those yet to commence Social Security benefits, the report suggests strategic approaches to outpace age-group averages. Delaying benefit collection beyond the full retirement age (FRA) can result in an 8% yearly increase, with no additional hikes after reaching age 70. Additionally, resisting early collection before the FRA prevents a potential 30% benefit reduction.
Earning more during working years also emerges as a key strategy, as the Social Security Administration (SSA) calculates benefits based on the 35 highest-earning years
Extending workforce participation can be advantageous, especially for individuals who may not have accumulated a full 35 years or worked in positions ineligible for Social Security benefits. While the report acknowledges the challenge of improving benefits for those already receiving below-average payments, it underscores the importance of understanding Social Security intricacies.
The Social Security Administration (SSA) encourages individuals to explore lesser-known “Social Security secrets” that could potentially enhance retirement income, offering insights into maximizing benefits and ensuring financial confidence in retirement.
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