Have you heard of that famous $16,728 Social Security bonus? That viral rumor has resurfaced several times, exciting many retirees and Social Security beneficiaries, because it is not a negligible sum.
We are quickly going to have to prick you again because this bonus is not real, at least not as it is portrayed in the viral posts that appear on social networks and in unreliable news media. Already in 2019 there were some press articles in online media claiming that there was a $16,728 Social Security bonus that they claimed existed, but there really is no such thing as an extra bonus that retirees can collect.
The Social Security Administration (SSA) uses a specific formula based on your income and the number of years you have made contributions, as well as the age at which you decide to retire, to grant you the benefits to which you are legally entitled.
However, there are ways you can increase your chances of receiving a much larger Social Security check when you retire.
A Good Salary Means a Juicy Social Security Check
The first of the three specific factors the Social Security Administration uses to calculate your benefit check is the 35 years of highest wages you have had as a worker. As the years go by, experts recommend looking into how to earn better salaries so you can make larger contributions to your retirement.
You can follow in real time how the benefits you provide are accumulating on the SSA website, using the My Social Security portal. We recommend that you go there every month and verify that the 35 years of contributions or those you have contributed are properly recorded. A single $0 month or $0 year will push down the 35-year average and leave you with a smaller retirement income.
Wait a little and your Social Security check will be bigger
Depending on your year of birth, you will be able to retire at age 62, in some cases, an age that is known as full retirement age (FRA). However, if you wait a few more years, you can see how your checks will gradually increase.
Only 10% of workers wait until age 70 to retire, but it is a great strategy if it is within your financial and physical capabilities. Retirement benefits at age 70 are 76% higher than benefits at age 62, adjusted for inflation.
Strategy for claiming spousal benefits for married couples
Married couples should carefully plan how to claim Social Security spousal benefits, as there are particular differences in them. One of the key differences is that, in the case of personal benefits, they are calculated based on the worker’s own work history. These benefits may increase if collection is delayed beyond full retirement age (FRA).
In the case of spousal benefits, which are benefits that a spouse can receive based on his or her partner’s work history, they do not increase if collection is delayed after reaching FRA.
Full retirement age (FRA)
The FRA varies depending on the year of birth:
- For those born between 1943 and 1954, the FRA is 66 years.
- For those born in 1960 or later, the FRA is 67 years.
- For those born between 1955 and 1959, the FRA gradually increases from 66 years and 2 months to 66 years and 10 months.
Amount of spousal benefits
According to the Social Security Administration (SSA):
The spousal benefit amount may be based on the applicant’s own income or up to 50% of the higher-earning spouse’s benefit, whichever is greater. For example, if the higher-earning spouse is entitled to $2,000 per month, the spousal benefit could be up to $1,000 per month, as long as this is greater than the benefit based on the applicant’s own income.
