Retirees Could Get A $ 900 Monthly Social Security Increase – How To Personal finance
Retirees Could Get A $ 900 Monthly Social Security Increase – How To  Personal finance

Retirees Could Get A $ 900 Monthly Social Security Increase – How To Personal finance

But what if you decided to claim benefits at 62 when your FRA was 67? You will be subject to five years of early submission fines, which equates to 5/9 of 1% for the first 36 months you claim benefits before OFF and 5/12 of 1% for each month you receive checks before then. Your $ 1,657 check would shrink by 30% in total due to these penalties and would come down to around $ 1,160. That’s a $ 497 difference.

It’s a big drop, but you might be wondering where the $ 900 increase comes in. To increase your benefit so much, you would have to wait beyond FRA and claim checks for the first time at 70. By doing so, you would earn the maximum amount of late retirement credits that will be available to those who do not get their first Social security benefit until after OFF.

Late retirement credits are worth 2/3 of 1% per month, so earning three years of them by requiring checks of 70 instead of 67 would lead to a 24% increase over the amount you would have received from FRA . Adding 24% to a standard benefit of $ 1,657 would bring it up to around $ 2,055 a month. That’s $ 895 more per month than the payment that would have come if your checks started at 62.

Of course, if your default performance is less than or greater than the $ 1,657 average, the specific numbers would look different. But the bottom line is that you would have a lot more monthly money from Social Security if you delayed submitting checks to 70 instead of requiring them at 62. This can be helpful later in life if your savings are at to decrease.

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