91% of retirees depend on Social Security income

A new survey shows that 91% of retirees in the U.S. rely on Social Security for their monthly income. This highlights how crucial these benefits are for many older Americans. If you want to maximize your Social Security payments, there are strategies you can follow. First, aim to work for at least 35 years. Social Security calculates your benefits based on your highest-paid 35 years. If you have fewer than 35 years, your missing years count as zero income, which can lower your monthly benefit. Even part-time work during your later years can help you meet this requirement. Second, consider boosting your income. Higher wages can lead to larger Social Security payments. Regularly check your pay against industry standards and work on upgrading your skills for career advancement. Also, any earnings from a side job can contribute to your benefits, as long as they are reported and taxed. Third, think about delaying your Social Security claim. The earliest age to start claiming benefits is 62. However, if you wait until your full retirement age, which is 67 for those born in 1960 or later, you can avoid a monthly reduction in benefits. Delaying past your full retirement age can increase your benefits by 8% for each year you wait, up to a maximum of 24% if you wait until age 70. Overall, understanding these strategies is crucial for anyone planning to rely on Social Security in retirement.