More Social Security applicants are making a smart move to increase payments – Community News
Social Security

More Social Security applicants are making a smart move to increase payments

Retirees who qualify for Social Security can choose when to claim the benefits.

Delaying that claim appears to be a wise move for millions.

Delaying your Social Security application may lead to higher payments

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Delaying your Social Security application may lead to higher payments

When you retire, you can choose when to apply for Social Security benefits.

While the amount of your benefits will depend on your salary, delaying your claim can lead to higher monthly payments.

That’s because claiming benefits before you reach full retirement age can come with penalties.

Not only that, but claiming before age 70 means denying deferred retirement loans, which can increase monthly payments.

The credits provide an 8% annual increase in benefits, so the longer you delay your claim, the more money you build up.

You can only earn these credits up to age 70, so delaying your claim after that will have no additional effect on your monthly payment.

But the longer you delay your claim until age 70, the greater the increase in your monthly payments.

What is the full retirement age?

The full retirement age depends on your year of birth.

It ranges from 66 and 2 months to 67.

Many people become eligible for benefits when they turn 62.

But this can result in much lower monthly payments.

Deferring your claim is a great option for growing your Social Security funds if you can rely on other income until you are 70.

Social Security COLA Increase

An increase in the cost of living adjustment (COLA) cost will come into effect in the coming months.

The 5.9% increase is the largest in nearly 40 years.

Those who collect Social Security will see the increase take effect in January 2022, while those who receive the Supplemental Security income will see it take effect on December 30, 2021.

According to the Social Security Administration, the increase is intended to offset recent inflation.

We explain how to get a Social Security card.

We also explain whether you can stop Social Security benefits and return to work.

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Rakesh

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