The maximum amount of Social Security benefits you can receive in 2024 is $4,873. And if that’s the benefit you’re entitled to, you might be able to live quite comfortably on Social Security alone, although it’s generally recommended for retirees not to take Social Security.
To be fair, if you’re at the maximum monthly Social Security benefit, it means you were a fairly high earner during your career. So if you’re used to a certain lifestyle that you don’t want to compromise on in retirement, a monthly income of $4,873 may be a bit inadequate.
Of course, most social security The recipient is do not have You are eligible for the program’s maximum benefits. But even so, there are many steps you can take to increase your profits in the long run.
However, I refuse to actively spend time pursuing a higher monthly salary from Social Security. Instead, I’d rather focus on other steps you can take to set yourself up for a comfortable retirement.
The future of social security is somewhat uncertain
There is no risk that Social Security will be abolished. I’m not worried about the program disappearing and not paying me anything after I retire.
But Social Security faces funding shortfalls, and the program’s benefit cuts could end within a decade at the earliest. Therefore, in such situations, even if you do your best to earn a certain benefit each month, you may not be able to pay the benefit by the time you are eligible to receive it.
That being said, postponing your application for Social Security is full retirement age (FRA) may increase profits. My boyfriend’s FRA is for him to be 67, so if he waits until he’s 70 to claim Social Security, his monthly payments will increase by 24%. If you are over 70 years old, late filing is no longer financially acceptable.
Is it possible to apply for Social Security benefits even at age 70? Probably. Or maybe not. Frankly, I don’t know. So I don’t want to put that kind of pressure on myself.
I want to focus on saving and investing
When it comes to Social Security, there are many things an individual cannot control, including whether benefits will be cut. You may also receive more benefits if you apply late, but it is not always possible to postpone your application.
That’s why I want to focus my energy on saving for retirement and investing my portfolio wisely. These days, I try my best to get the most out of my solo 401(k) plan. Beyond that, I also fund taxable brokerage accounts designated for retirement savings when I have the opportunity.
To save aggressively for retirement, you need to spend less on other things like your home, car, and vacations. However, I intend to make that effort for financial stability in the future.
We also do our best to research different companies and investments to build a strong portfolio. You can use that time to do more leisurely things. But again, I’m going to try.
Of course, as I approach retirement age, I’ll be thinking more carefully about my decision to apply for Social Security. And, as it turns out, you might delay your claim to get a higher profit. But either way, I’m not going to stress about how much Social Security pays me. Not when I’ve been pushing myself for years now to save and invest as aggressively as possible for my retirement.
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Why I won’t pursue an increase in Social Security benefits Originally published by The Motley Fool
