Navigating the intricacies of Social Security benefits can be daunting, especially for retirees living on a fixed income. Thankfully, there are strategies to maximize these benefits, potentially increasing the annual amount you receive.
If you’re curious about the so-called $16,728 Social Security bonus, this guide will walk you through what it really means and how you might enhance your benefits.
Bonus Myth
First off, it’s important to clarify that there isn’t an actual $16,728 “bonus” available from Social Security. This figure is a theoretical increase in annual benefits if you implement certain strategies, primarily delaying your benefits until age 70. Let’s delve into how you can maximize your Social Security income.
Employment
Your Social Security benefits are calculated based on your highest 35 years of earnings. If you have years with little or no income, these years will bring down your average, lowering your benefit. By working longer and replacing those low-earning years with higher-earning ones, you can significantly boost your benefit amount.
Increase Income
Another way to increase your future benefits is by boosting your current income. Asking for raises, switching jobs for better pay, or picking up side gigs can help. For example, earning an additional $100 a week could translate to a $5,000 annual increase, which over time, boosts your Social Security earnings.
Age Strategy
While you can start claiming Social Security at 62, your benefits will be reduced. For each year you delay past your full retirement age (usually around 66 or 67), your benefits increase by about 8%, maxing out at age 70. If you wait until 70, your benefits could be 76% higher compared to starting at 62, considering inflation adjustments.
Application Process
Applying for Social Security benefits can be done in several ways, depending on your circumstances. Here’s a brief overview:
Online Applications
Applying online is convenient and accessible from anywhere, making it ideal for those who live abroad or prefer not to visit a local office. The process is straightforward and allows you to complete your application at your own pace.
Non-Citizen Application
Non-citizens must first obtain a work permit and Social Security Number (SSN). After securing an SSN, you must provide proof of your identity and immigration status to be eligible for benefits. This process can also be started online, making it easier to gather and submit the necessary documents.
Retirement Payment Projections
Based on recent projections by The Senior Citizens League (TSCL), you can estimate your future benefits considering the cost-of-living adjustment (COLA). For instance, the average Social Security payment is expected to rise from $1,790 to $1,847.30 in 2024. While this 3.2% increase is smaller than the previous year’s 8.7% adjustment, it is still above the 20-year average of 2.6%, reflecting current inflation trends.
Knowing and implementing these strategies can help you make the most of your Social Security benefits. By working longer, earning more, and delaying benefits, you can potentially increase your annual payout significantly.
Thank you for reading. Implementing these strategies can help you enhance your Social Security income, potentially creating your personalized version of the so-called $16,728 bonus.
FAQs
Can I really get a $16,728 bonus?
No, it’s a theoretical increase if you maximize your strategies.
How does delaying benefits increase my payout?
Delaying increases your payout by about 8% annually up to age 70.
What’s the best age to start collecting benefits?
Waiting until 70 maximizes your benefits, but it depends on your situation.
Can non-citizens receive Social Security benefits?
Yes, with a work permit and valid SSN, non-citizens can receive benefits.
How can I apply for Social Security benefits?
You can apply online, by phone, or in person at a local office.