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BENEFITS BOOST
Social Security expert shares how ‘delay’ trick earns you $26k more each year & practical way to maximize your benefits
How much you receive from Social Security depends on two factors
SOCIAL Security is often a lifeline for older Americans or those with disabilities, offering retirement benefits and financial protection.
With the right knowledge and tips, Americans can maximize their payouts from the social insurance program.
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Social Security taxes are automatically withheld from most Americans' paychecks so they receive monthly payments when they retire, typically starting in their 60s.
The amount that Americans receive from Social Security depends on their lifetime earnings and when they choose to start receiving benefits.
The majority of Social Security payments go out to retired Americans and their dependents, who accounted for 77.8% of total benefits paid in 2023, per the Social Security Administration.
However, the program also provides benefits to workers who become disabled and families in which a spouse or parent has died.
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To help Americans navigate the world of Social Security, The U.S. Sun spoke with Shalae Morgan - an expert in all things money.
Morgan, a content creator and entrepreneur, shares financial information and advice with her over 513,000 followers on YouTube (@shalaemorgan).
MAXIMIZING PAYMENTS
The financial expert first delved into how Americans could receive the most retirement benefits from Social Security.
Americans can receive benefits once they reach age 62 and if they have worked and paid Social Security taxes for at least 10 years, per the Social Security Administration.
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Morgan advised beneficiaries to hold off on receiving their benefits as long as possible.
"To maximize your Social Security payments, delaying your collection is an excellent strategy," she said.
Social Security told me they overpaid me $23,202 – their mistake fell on my shoulders and left me unable to afford food
Morgan explained that if Americans retire at 62 in 2024, the maximum benefit they can receive is $2,710 per month.
If Americans wait until their full retirement age (FRA) in 2024, they can receive up to $3,822 in benefits - around $1,100 more each month.
The FRA depends on the year you were born:
- 1943–1954: age 66
- 1955–1959: age 66 and a certain number of months, increasing by two months each year:
- 1955: 66 and 2 months
- 1956: 66 and 4 months
- 1957: 66 and 6 months
- 1958: 66 and 8 months
- 1959: 66 and 10 months
- 1960 or later: age 67
Those who wait until 70 to start their benefits receive even more money each month.
"If you retire at 70 in 2024, you can receive up to $4,873, which is a significant increase from earlier ages," said Morgan.
Those who retire at 70 can potentially receive $2,163 more each month in benefits, which comes out to $25,956 more per year.
"Therefore, the longer you wait to collect your Social Security, the better it will be for you."
STAYING INFORMED
Morgan suggested that Americans maximize their Social Security benefits by staying informed.
The expert noted that attending a Social Security seminar or workshop is a great way to determine the right retirement age depending on your situation.
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The classes are often free and virtual and can provide key information about benefits.
Morgan advised knowing what questions to ask going into the classes.
Because entitlements vary based on individual circumstances, having specific questions in mind can ensure your preparedness and help maximize your benefits.
"In the next few years, over 11,200 Americans will turn 65 every day,
which means many people will be eligible for Social Security benefits," she noted.
Who can receive Social Security Benefits?
In addition to retired Americans, the following categories of people are eligible to receive Social Security payments:
- Someone with a qualifying disability
- A spouse or child of someone getting benefits
- A divorced spouse of someone getting or eligible for
Social Security - A spouse or child of a worker who died
- A divorced spouse of a worker who died
- A dependent parent of a worker who died
Source: Social Security Administration
"However, many of them are unaware of what they are entitled to, which is why it's essential to get informed and make the most of your benefits."
The U.S. Sun previously spoke to Morgan on other financial topics.
Read More on The US Sun
The expert paid off $173,000 in student loans in less than two years and shared seven tips on how to do so.
Plus, Morgan discussed tricks to get free money and how "reinventing yourself" can find you alternative sources of income.