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Americans can argue Social Security pension benefits as early as age 62, but this is not always the best option. The longer you wait to collect, the higher your Social Security payment will be when you decide to collect. For example, on average your payment would be 30% less if you do not wait until you turn 67 to pick up, instead of picking up at age 62.
Seniors choose to claim benefits early for a variety of reasons, ranging from needing the income right away to wanting to invest the money for a larger long-term payout. But sometimes they come to regret the decision.
If you feel you needed social security too soon, there are ways to increase your income to help pay unforeseen bills or fund a lifestyle change. Three options as outlined by The Motley Fool follow.
Back to work
The biggest benefit of retiring to go back to work is that you have another source of income that could potentially increase the average salary on which your social security benefits are based – if you earn a higher average salary than you did in your past time. career. In this case, the higher salary you earn now will push out previous years of lower earnings, which would increase your average salary calculation and your benefits.
One thing to keep in mind though: If you are under your full retirement age (OFF) and earning enough money, you could end up temporarily losing your Social Security income, Motley Fool noted. It might not be that bad though. This basically means that your benefits are temporarily reduced or stopped to increase your benefits in the future.
Abolish performance requirements
You can do this if it is less than a year since you applied for social security benefits. This means that you will repay all the benefits that were paid out after your first claim, which lets you start over with the option of claiming higher benefits at a later age. Of course, this option is only possible if you have enough money to repay the first benefits you received.
If you have already reached full retirement age, you can request that your benefits be suspended. In this scenario, you will stop receiving payments, either until you turn 70 or when you request to be resumed. This option lets you start earning overdue retirement credits, which will eventually increase your monthly income.
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