How to Maximize Social Security Retirement Benefits
Maximizing your social security retirement benefits involves postponing application for social security for as long as possible. Also, if you maintain or increase you income before you retire, you will receive the highest possible benefits. The Social Security Administration (SSA) bases your eligibility for social security retirement benefits on the accumulation of 40 credits during your working life. This can accumulate in 10 years.
- Apply to and work in jobs that qualify for the Social Security insurance. Your employer will automatically deduct your social security insurance contributions from your paychecks. If self-employed, report your earnings for social security when you file your Federal Tax returns. The Internal Revenue Service collects your Social security taxes in accordance with the SSA.
- Remain employed for at least 35 years to receive your maximum social security benefits. The SSA calculates your social security benefit payments based on your highest grossing 35 years of income. For each year you work over 35 years, the lowest grossing income year drops from the calculation. Employees earn more income in their later years than their earlier working years, so working as long as possible will help increase your social security benefit payments.
- Delay applying for your social security retirement benefits until age 70, if possible. People born between the years January 2, 1943 and January 1, 1955, have the option to retire early at age 62. If however they choose to do that, they will receive 25 percent less than their benefit at their full retirement age of 66 years, and 32 percent less than if they retired at 70 years of age.