The month of September, the last of the 2024 fiscal year, is about to end, and when October hits the calendar, we will begin to have a good idea of how much Social Security benefits will increase. Remember that each year these types of payments are increased following the cost-of-living adjustment (COLA), an instrument created so that beneficiaries do not lose purchasing power in the face of inflation and the consequent increase in the prices of goods and services.
The amount of money you can receive from Social Security depends on the age at which you decide to retire. Although the full retirement age (FRA) is different for everyone, depending on the year they were born, you can start claiming payments from the age of 62.
Retirement Thresholds in the USA
If you retire too early you could have a cut of up to 30% in benefits, and if you wait until you are 70, you could have a strong increase, as much as 24% above. The percentage table is as follows:
63 years
- Profit percentage: around 75%
- Description: If you wait one more year after age 62, the percentage increases, but it is still considerably less than the 100% you would get at your age. FROM.
64 years
- Profit percentage: around 80%
- Description: Profits are still small, but they are closer to your total profit.
65 years
- Profit percentage: around 86.7%
- Description: When you retire at this age, the reduction is smaller than in previous years, but you still do not reach 100% of your benefits.
66 years
- Profit percentage: around 93.3%
- Description: You are very close to the FROM for those born between 1955 and 1959, but you would still be accepting a small cut in the monthly benefit.
67 years (FRA for those born after 1960)
- Profit percentage: 100% of the full benefit
- Description: At this age, you receive the full benefit you have accumulated, based on your earnings history and years of contributions.
68 years
- Profit percentage: around 108%
- Description: Delaying your retirement one more year gives you a bono for late payment, increasing the monthly payment by approximately 8% annually after age 67.
69 years
- Profit percentage: around 116%
- Description: Continuing to work or delaying applying for benefits raises your monthly payments considerably.
70 years
- Profit percentage: around 124%
- Description: This is the maximum you can receive. There is no additional benefit if you decide to delay your retirement after this age.
September Payments: Retirement, SSDI Benefits Scheduled
For the month of September, the SSA scheduled four different payment dates instead of the traditional five, since the allocation of funds for Supplemental Security Income (SSI) beneficiaries was brought forward. This payment is usually made on the 1st of each month, but since September 1st was a Sunday, it was advanced to August 30th.
Then, on September 11, payments were sent for pension and Social Security Disability Insurance (SSDI) beneficiaries who have birthdays between the 1st and 10th of any month.
The next scheduled payment will arrive this week: it is intended for those pension and SSDI beneficiaries who comply between the 11th and 21st of any month. Finally, a final round of payments is intended for those in those two aforementioned groups who have birthdays between the 21st and 31st of any given month.
How Can I Increase My Social Security Benefits?
There are several strategies you can take to make your Social Security checks bigger when you start claiming them. The first thing is to work for at least 35 years and that in all the months of these years there have been contributions to the respective taxes. If any month went unpaid, then the SSA will count that month as “zero,” which will push down your average.
Replacing years of zero or low income in your earnings history can give your Social Security retirement benefit a boost, so what you should do is start by analyzing your payment history before claiming your first payment.
Earn More Money if Possible
Increasing your income is also a basic strategy to increase your chances of having a better retirement check. Having a retirement income with a higher weight in Social Security can effectively help with real risks such as market volatility, high tax burdens, or rising inflation.
On the other hand, if this is your case, and it is within your means, consider working until full retirement age (FRA). As we said before in the list you saw above, if you apply for your benefits at age 62, that is, before you reach your FRA, your benefits may be cut and your check will be substantially reduced. If possible, wait until age 70 to get up to an additional 24% in some cases. For example, if your FRA guarantees you an income of $1,000 a month, waiting until age 70 can get you a check for $1,240.
