Key Takeaways
- There are some things you can do to increase your Social Security benefit.
- Timing and the state you reside in are factors that affect what you’ll receive.
- Understanding these factors will help you plan for retirement.
Need a boost? If you’re feeling a little sluggish, a simple cup of coffee may provide that needed boost. But what if you’d like to boost your Social Security? While it’s more involved than brewing some coffee, the basics of how to do it don’t need to be wrapped in mystery.
There are three simple ways you can give your Social Security a boost. First, you can work longer. Social Security keeps accumulating and your primary insurance amount (PIA) grows, and is calculated based on your 35 highest-earning years. Your PIA is the benefit you receive from Social Security, and if you work at least 35 years, you’ll be giving your benefit amount a boost.
Second, if you delay receiving your benefit, you’ll get another boost. You can elect to receive your benefit as early as age 62, but you can choose to delay this up to age 70. Each year that you delay it, your benefit increases by 8%.
The third way to boost your Social Security is to find a way to reduce your expenses. This one might be a little more difficult to do because it involves moving to a state that doesn’t tax Social Security. Another added benefit, though, is the state may have a reduced state income tax – or no state income tax at all.
So, some food for thought when it comes to your Social Security benefit to help you live more comfortably in your senior years. Until next time, enjoy.