Demands for social security prematurely? There are still ways to increase your income
Demands for social security prematurely?  There are still ways to increase your income

Demands for social security prematurely? There are still ways to increase your income

Prostock-Studio / Getty Images / iStockphoto

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.

Discover: 25 things to sell when you are ready to retire
More: 27 Ugly Truths About Retirement

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.

See: POLL: Do you think student loan debt should be forgiven?
Find: Gas Stimulus, Elon Musk, SNAP forms, Social Security and more financial updates

Suspend benefits

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.

More from GOBankingRates

About the author

Vance Cariaga is a London-based writer, editor and journalist who has previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a BA in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting won awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked with banking, accounting and restaurant management. A North Carolina native who also writes fiction, Vance’s short story, “Saint Christopher,” became number two in the 2019 Writer’s Digest Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.

Leave a Reply

Your email address will not be published.