If you're already 60 years old, you're probably wondering when to file Social Security retirement benefits. Undoubtedly, money can provide you will be essential after you stop working.
However, not all seniors who apply for retirement Benefits plan it right. Especially those seniors who can't afford all the expenses they come across as retirees.
In truth, millions of American workers dream of early retirement. What many workers overlook is the fact that filing at 62 means getting paid 30% less every month. But can you really afford it with inflation so high?
HOW CAN SOMEONE RECEIVE $4,873 IN SOCIAL SECURITY IN RETIREMENT?
The Social Security Administration recently announced that the top payment for a 70-year-old in 2024 is $4,873. To get it, you need to fulfill three conditions. The first is to file at age 70. But why?
Social Security gives a 24% bonus to those workers who apply retirement Benefits at the age of 70. That's about 8% extra per year after full retirement age. It is definitely positive from a financial point of view.
However, not everyone is fit and healthy enough to continue working into their 70s retirement at 62 can be a great choice if you are unemployed and can't find work, are in poor health, or have more than enough saved up.
Having a large egg can give you peace of mind. But fewer workers manage to do so. Moving on to the second requirement, to receive $4,873 in 2024, you must work at least 35 years.
WRITING AT 70 AND WORKING FOR 35 YEARS
If you haven't worked for 35 years when you apply for Social Security, you'll get a reduction in your monthly payments. This is the exact number of years the SSA uses to calculate your payment amount.
So, make sure you work at least 35 years before you get retirement Benefits. The last requirement is not so easy to fulfill. That's why so few retirees qualify for $4,873 in checks in 2024.
The thing is, the worker must also have earned the taxable maximum for 35 years. The taxable maximum is the contribution and the income basis. It is $168,600 in 2024, up from $160,200.
In summary, if you earned 35 years of the taxable maximum and file at age 70 in 2024, you qualify for a payment of $4,873. It was $4,555 in 2023, so there was a nice increase after the COLA increase.