Four successful ways to maximize Social Security benefits

Delaying receipt of Social Security benefits while working raises monthly payouts

By Thomas Jay

Retirement is every American worker’s dream, but with recent changes to Social Security there is a cause for concern, as many Americans are concerned if the system will be in place when they are ready to use it. Part of this will be to know the simple rules about Social Security when retirement planning and how it can best be implemented. There are a few simple ways to maximize Social Security benefits when they are needed.

The basic rule: The meaning of Social Security

The first rule of understanding Social Security benefits is to keep in mind that it is supplemental income. Since its inception in 1935, it has never been intended to be a primary means of financial support. With that in mind, it is best to keep abreast of any changes to Social Security and plan accordingly. This may mean taking a look at work credits accrued and the potential pay-out at age 62, 65, 67, and 70. The larger monthly pay-out occurs for most folks at age 70. Planning to work until that age will maximize the monthly benefit amount.

SSA benefits: What goes in, comes out

Taking a serious look at the work credits as well will give more insight on building those credits before retiring. Taking on a second job or increasing investment options on 401(k), Keogh, and IRA's will help make Social Security pay-out more beneficial. It begins with taking a serious look at the Social Security projected pay-out now. It is important to find any mistakes and correct them with SSA immediately.

Work: Past and present equals future

Looking at work that earns more will give a better opportunity for maximum Social Security pay-out. Having a job that has incremental raises that increase yearly salaries in a marked progress increases Social Security benefits later on. Working longer is an option as well, as those persons who work thirty-five years or more optimize Social Security payments as opposed to those who don't. Increasing education and job skills make anyone viable for better paying jobs. Better paying jobs optimize better Social Security benefit pay-out.

Another simple rule is to make certain the current employer is taking out enough SSA taxes in your behalf. An annual check of this will make certain that benefits later on due to you are accurate and reflect the income that you are deserving of. This should be done annually. Most people miss this small task and are disappointed later on when the payments are not what they expected.

The application tells all for benefits

Some benefits can be increased in the application process. Filing with information concerning spouse and dependents can increase the monthly Social Security pay-out. Spouses of those retiring should also file when their spouses file, and possibly again if their spouse should become deceased. The potential for Social Security pay-out differs under various circumstances, so applying at every change could increase pay-out.

Once Social Security benefits have been established, working less pays. Those who work, may face having SSA benefits reduced if their earnings fall above the stop-gap earning bracket determined by the SSA. Once benefits are established, it is wise to make sure to not earn over the amount set by them. Enjoy retirement and all its benefits!

About the author: This article was written by Thomas Jay, blogger and internet marketing specialist for Rank Executives. To learn more about Social Security benefits, he urges you to visit RueZiffra.com.

Image: US-PDGov