Millions of retirees receive monthly Social Security checks; the government provides monthly assistance for their basic needs. However, the amount is not sufficient to cover the expenses. The inflation rise has made life difficult for retired individuals in the past few months. Working individuals need to save wisely to save a decent amount for their retirement. The Motley Fool reports that retirees can add $70,000 to their savings through intelligent financial management. The Social Security Administration calculates the Social Security based on the highest-earning 35 years on an individual.
Retirees need to delay the payments
The social security recipients need to wait for the right age to apply for the checks. Retirees need to apply for the benefits after the Full Retirement Age (FRA); FRA is based on the retiree’s birthdate. However, retirees can wait till 70 for the maximum Social Security amount. The Motley Fool reports that the retirees are eligible for post-retirement benefits after 62. However, applying for benefits at 62 accounts only for 70% of the Primary Insurance Amount (PIA) per check. Retirees applying for benefits at 66 will get 75% of the PIA per check. The data shows that retirees who apply for checks after 70 receive 124% of the PIA per month.
Late applicants receive a higher amount
The Motley Fool reports that retirees’ average Social Security amount is $1,661 per month. The retirees applying for checks at 62 will get $458,436 till 85, whereas a retiree applying for the benefits till 70 will receive $2,943 per month. These retirees will receive $529,740 simultaneously despite enjoying the benefits for eight fewer years. However, retirees need to decide their Social Security age based on life expectancy. Healthy individuals should delay their monthly payments, while those with lower life expectancy should benefit at a younger age.
Retirees need to start saving from professional age
Retirees need to assess their condition before applying for the benefits. Several retirees use their benefits to pay off their debts. Retirees with no debts or post-retirement obligations should delay their Social Security payments and receive an extensive monthly check. In addition, individuals should take expert advice for retirement planning during their working years.