13 Ways to get more some ways to make money out of social security – optimize your retirement

We’re an aging population here in the U.S. That means that retirement is in focus and specifically how what are some ways to make money retirees can optimize their retirement income. One big area where people don’t get it right is with social security. Overwhelmingly, people claim social security at 62, which is too early for a majority of people. Most people I talk to know that waiting to file what are some ways to make money is a great way to increase their social security benefits. But when I ask them about other steps to take what are some ways to make money to increase their benefit amount…crickets. There are many ways to get more out of social what are some ways to make money security, as outlined in the below list. I will keep this list updated and add to it what are some ways to make money from time to time. Please comment below if you know additional ways to get what are some ways to make money more out of social security. 1) wait to file

The biggest and most obvious way to get more out what are some ways to make money of social security is simply to wait. Sit on your hands and try not to call the what are some ways to make money social security office for a while. This is not always the best move but it is what are some ways to make money for most folks. Over 40% of people file social security as soon as they can what are some ways to make money – at 62. But every year you wait gives you an 8% increase in benefits. 8% is a really good deal but remember, you don’t get the money sooner if you wait. And money received today is worth more than money received what are some ways to make money a year or more from now. There’s some balance you have to consider here and multiple what are some ways to make money factors like your health, dependent situations, spousal situation, etc. 2) make more money NOW

Social security benefits are calculated on your highest 35 years what are some ways to make money of earnings. The SSA uses your earnings history to come up with what are some ways to make money your average indexed monthly earnings (AIME). To get your AIME, add up the highest 35 years of your income (as indexed for inflation) and divide by 420. Then apply the bend-point formula to the AIME to get to your primary what are some ways to make money insurance amount (PIA), which is the amount you’re receive at full retirement age (FRA).

If you don’t have 35 years of high income earnings, then consider increasing your income right now. Negotiate a raise with your boss, work more, consult on the side, start an online business. The objective here is to make more earned income. This will not only increase your social security benefit amount what are some ways to make money when you do file, but it will also give you more money in your what are some ways to make money pocket today. 3) use a social security comparison spreadsheet

I’ve developed this spreadsheet for a simple way to compare what are some ways to make money your social security benefit by year at different claimant ages. Click on file – save a copy to pull down to your own computer what are some ways to make money and make edits. First step in using this spreadsheet is to figure out what are some ways to make money your benefit amount at 62, FRA, and 70. You can get this right from the social security website what are some ways to make money or use an online calculator.

As you can see above, this spreadsheet shows you your annual benefit amount using a what are some ways to make money 3% cost-of-living adjustment which can be adjusted. It also gives you the net present value of your what are some ways to make money lifetime benefit amount using a discount rate of money of what are some ways to make money 2.5%. You can see how to get more out of social what are some ways to make money security by year or over your lifetime. 4) use software

There’s a social security software that shows you exactly how what are some ways to make money to optimize your benefits given your specific situation. Maximize my social security is $40 to buy which means it’s a no-brainer. It will payoff the day you buy with peace of what are some ways to make money mind, not to mention the hundreds of thousands more you could what are some ways to make money get over your lifetime. You can see how a couple used this software to what are some ways to make money get more over $260,000 over their lifetime.

Those claiming social security in 2018 will be between 62 what are some ways to make money and 70. The year in which you were born determines how your what are some ways to make money benefits are calculated. The full retirement age chart is listed below for reference. Anyone born prior to 1955 has a full retirement age what are some ways to make money of 66. Then, the full retirement age increases by 2 months until 1960, when it levels off at age 67. Get the most from social security by not filing before what are some ways to make money your FRA.

It makes sense to plan for social security, even if you’re years away from claiming. Social security is complex and can be intimidating for folks what are some ways to make money getting ready to file. By knowing a few things about social security, you’ll be prepared to file and to make the right what are some ways to make money decision. Knowing things like how social security is calculated, how it’s taxed, how it increases each year, and what the maximum monthly payment is will all help what are some ways to make money you get the most out of social security. You can get up to $3,698 in monthly benefits if you wait until you’re 70 and had the max earnings throughout your lifetime. 8) hire A financial planner

Nobody likes paying for people to tell them to save what are some ways to make money more and spend less; that’s what your conscience does for free. But when it comes to planning for retirement, it makes sense to bounce ideas off of a good what are some ways to make money fee-only financial planner. Fee-only financial planners will give you objective advice without trying what are some ways to make money to sell you things you don’t need. It may seem odd to pay someone money to save what are some ways to make money money or get you more money. It’s worth it even if you have to pay someone what are some ways to make money $500 for a consultation and a retirement plan. You’ll be in retirement for 30+ years and could stand to make $100’s of thousands more by making good financial planning decisions. Retirement income is one giant math problem; make sure you solve yours. 9) use online calculators

There are 6 main online calculators that are worth your what are some ways to make money time. While they won’t give you the same level of detail as you what are some ways to make money will with a software, calculators are free and can give you a good idea what are some ways to make money of how much money you’ll receive. From there you may be able to figure out what what are some ways to make money works best for you. The various calculators are all a bit different. Some work really well to compare how much you’ll receive at various ages. Some are better at giving you a quick estimate of what are some ways to make money your social security. I like the consumer financial protection bureau’s planning for retirementcalculator. 10) know how working in retirement affects your benefit amount

Let’s say you make $37,040 in 2018 and you told the SSA that you what are some ways to make money plan to make this amount ahead of time when you what are some ways to make money filed. They will withhold the first $10,000 in social security payments during the year ($20,000 made above the $17,040 limit divided by 2), then pay you the regular payment amount for the rest what are some ways to make money of the year. If your regular payment amount at age 62 is $2,000 per month, the SSA will withhold your payment from january – may, then start paying you $2,000 in june until the end of the year. 11) know how much you’ll get back

The top 2 income quintiles don’t get as much back in social security compared to what are some ways to make money the bottom 3 quintiles. This is due to the bend-point formula (the numbers in the chart below are just an illustration what are some ways to make money – not actual). The bend-point formula lowers the amount the benefit amount based on what are some ways to make money your AIME. It lowers the % of benefits as your income increases. Social security was designed to be more beneficial to lower-income americans.

Remember how we used to get statements every year that what are some ways to make money gave us a breakdown of our benefits? Thanks to cost cutting that is no longer. Now, statements go out when you’re 25, 30, 35, 40, 45, 50, 55, and 60 and over. Go through the numbers and make sure they look correct. Make sure that if you have any military service of what are some ways to make money have worked overseas, you make sure be extra thorough. The SSA is pretty accurate but they’re still a government bureaucracy so errors can occur. 13) file when ready

Once you’ve figured out how to get more out of social what are some ways to make money security, you can file online, by phone ( 1-800-772-1213), or in person at your local office. Make sure that the employee at the social security office what are some ways to make money completes your application accurately so that you get the most. Do you have a spouse that needs to also file what are some ways to make money under your benefits? Is the amount they tell you in-line with the amount given by the SSA website or what are some ways to make money other estimates? Make sure you’re on top of this step. You don’t want errors to occur in the final phase of what are some ways to make money filing.

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