If You Are Struggling to Save for Retirement, You Should Definitely Consider This Social Security Move

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Retirement may turn out to be a more expensive prospect than you anticipated. You might think you can get away with spending half as much as you did when you were working, but most seniors end up needing about 70% to 80% of their previous earnings to maintain the same standard of living.

 

social security

 

One major reason for this is that I have a lot of time on my hands. When you work, you are occupied for eight hours or more per day (assuming you work a typical full-time schedule). When your job is no longer available, you’ll need something to do – and that something, whether it’s golfing, travelling, or adopting a slew of pets, could end up costing you a lot of money.

That is why it is critical to enter retirement with a reasonable amount of money saved. But what if your senior year is approaching and you’ve already passed up that chance?

In that case, it definitely pays to think about extending your career and increasing your 401(k) or IRA contributions while you can. But if that doesn’t work, there’s one Social Security move that definitely pays off.

 

The Next Step:

The Social Security benefit to which you are entitled during retirement is determined by your lifetime earnings. And once you reach full retirement age, or FRA, which is either 66, 67, or somewhere in between, you can collect the full benefit.

But here’s the cool thing about Social Security: it will generously compensate you for delaying your filing. Your benefits will increase by 8% for each year you delay taking Social Security after the FRA.

That incentive expires when you reach the age of 70. However, if your FRA is 67 and you wait until the age of 70 to file, you can permanently increase your monthly benefits by 24 percent. That’s a great way to make up for any savings shortfall.

Of course, deferring Social Security until the age of 70 may necessitate working until the age of 70. And it’s possible that this isn’t ideal.

However, one option is to see if you can switch to part-time work. You might find that a partial paycheck suffices to pay your bills while you wait for Social Security, especially if you try to live a frugal lifestyle during that time. Or you could rely on your part-time salary and small withdrawals from your retirement plan (though, ideally, you’d leave your nest egg alone for a little longer in that case).

 

Don’t expose yourself to the possibility of a shortfall.

Many seniors are surprised to discover that retirement costs more than they anticipated. If you know you won’t have much in the way of savings when you retire, it’s a good idea to postpone filing for Social Security as long as possible. Once you increase your benefits, you’ll be guaranteed a higher monthly wage for the rest of your life. And that’s important when you’re already short on funds as you approach retirement.

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Most retirees overlook the $18,984 Social Security bonus.

If you’re like the majority of Americans, you’re a few years (or more) behind on retirement savings. However, a few little-known “Social Security secrets” could help you increase your retirement income. For example, one simple trick could earn you up to $18,984 more per year! We believe that if you learn how to maximise your Social Security benefits, you will be able to retire confidently and with the peace of mind that we all seek. Simply click here to find out how to find out more about these strategies.

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