12 Ways To Boost Your Social Security In 2021
The average Social Security check paid out in 2018 was for just $1,404, according to The Motley Fool.
That works out to just $16,848 per year... hardly enough to get by comfortably on these days.
And that’s before taxes!
It's no secret that retiring in today's economy is harder than ever for seniors. The costs of healthcare, housing, utilities and even food has all skyrocketed. And unfortunately the Cost Of Living Adjustment just isn't cutting it for some seniors.
That's why we've compiled this extensive list of the top ways that seniors can potentially boost their Social Security benefits in 2021. Enjoy!
1. Work At Least 35 Years
To calculate your benefit amount the SSA totals your earnings from your 35 highest-earning years and produces an average figure.
If you entered the workforce late, or had periods of unemployment, those years will count as zeroes bringing down the average. But, after you have worked for 35 years, each additional year of earnings will replace an earlier year of lower earnings, which will increase the average—and hence, your benefit.
2. Check For Mistakes With Your Social Security
You get a Social Security statement every year. Do not assume it is accurate. Check the numbers and report any errors to the Social Security Administration.
Remember, your benefits are based on the average of your 35 highest-earning years. A miscalculation for even one or two of those years could impact your benefit for the rest of your life.
3. Born Before 1957? New Medicare Advantage Policy Could Boost Your Social Security Check By $148 Every Month
If you're 65 years or older and currently on Medicare, a new Medicare Advantage Policy could boost your Social Security check by up to $148 per month along with cutting down your out of pocket medical expenses. You'll be shocked to see how much you could qualify for!
It costs nothing to check, and takes maybe 2 minutes, so it’s very much worth your time. Select your age below, and see what’s available to you.
How Do I Qualify?
Step 1: Tap your age below.
Step 2: Answer a few questions to see if you're eligible for new benefits in 2021! Click here to see if you're eligible.
Select Your Age:
4. Save On Your Property Taxes
Did you know that every state has some sort of property-tax benefit for seniors? Several states have programs that freeze property taxes completely for seniors, and 10 limit how much a property's tax value can increase. Also, the homestead exemption can be larger when a homeowner reaches a certain age. (The larger the exemption, the lower the tax.) In Colorado, seniors 65 and older can exempt up to 50% of their residence's first $200,000 in value.
Check with your local township to see ensure you're getting the senior discount!
5. Max Out Earnings Through Full Retirement Age
As discussed in #1, the SSA calculates your benefit amount based on your earnings. It’s important to note that earnings above the annual cap—$137,700 in 2020 and $142,800 in 2021—are left out of the calculation.
So your goal should be to maximize your peak earning years, striving to earn up to the annual cap but being less concerned about earning above it.
Smart pre-retirees look for ways to increase their income, such as taking on part-time work or generating business income. Those not paying attention may scale back on their work or semi-retire which can of course lower their Social Security income!
6. Delay Your Benefits
Most people know their full retirement age (FRA)—the age at which they can receive their full Social Security benefits. For most people retiring today, the FRA age is 66.
But very few people know that if they delay retirement until after they reach FRA, they can earn an 8% annual return on their available benefits. The benefit amount increases by 8% each year that it is delayed until age 70.
For example, if you are eligible for $24,000 per year at age 66, then by waiting until age 70 your annual benefit would increase to $31,680. In cumulative terms, you would increase your total benefits from $378,000 received by your life expectancy at age 82 to $411,000.
And. this example doesn’t account for cost-of-living adjustments! Assuming a 2.5% COLA, your delayed benefit would grow to $38,599, and your total benefit amount would increase to $584,000 by age 82.
7. Claim Spousal Benefits and Delay Yours
If you and your spouse were born before January 02, 1954, and have both reached full retirement age, you can claim spousal benefits and let your own benefits keep growing. Then, when you reach age 70, you can switch to your higher benefit.
One caution: You can't have claimed your own benefit if you want to make use of this "restricted application," as it's called.
8. Avoid Social Security Tax
If you are thinking of boosting your retirement income by working after you start receiving Social Security benefits, you need to pay attention to the tax consequences of increasing your income. Did you know that anywhere from 50% to 85% of your benefit payment can be subject to federal taxes when you hit certain income levels?
The smart play may well be looking for ways to spread out your income from various sources so as to prevent any increases that could trigger a higher tax.
9. Take Care Of Your Kids
Some later-in-life fathers still have minor children at home when they retire. More than 500,000 children currently receive monthly payments based on a parent's Social Security retirement benefits.
If you're in this situation, you can put aside the money for your kids – this may even cover the cost of their college education. That's what one 67-year-old man in Texas plans to do. Let's call him "Samuel".
After the death of his first wife several years ago, Samuel married a younger woman, and they're expecting their first child this year. When the baby is born, he or she will receive monthly Social Security checks worth up to half of Samuel's benefit until the child reaches age 18.
Samuel plans to stretch those benefits even further by depositing them in a state-sponsored 529 college-savings plan. By contributing to a 529, he'll be able to use the earnings and distributions tax-free to pay for tuition, books, fees and other qualified expenses. If the child received $500 a month, for example, and the account earned an average 5% annual return, the college fund would be worth about $175,000 in 18 years. Depending on where you live, you may also qualify for a state income-tax deduction on your 529 contribution.
10. Investigate Divorced Spouse Benefits
If you’re currently unmarried but a previous marriage lasted at least 10 years, you could qualify for spousal benefits based on your ex’s work record. The amount can be up to 50% of the worker’s benefit at his or her full retirement age. If you remarry, however, the divorced spouse benefit stops. You must be at least 62 to get spousal benefits.
If your ex has died and the marriage lasted at least 10 years, you could qualify for survivor benefits of up to 100% of your ex’s benefit. You can remarry at 60 or older (or 50 and older if disabled) and still receive divorced survivor benefits. Survivor and divorced survivor benefits can begin at age 60, or at age 50 if the survivor is disabled, or at any age if you’re caring for your ex’s child who is under 16 or disabled (and in that case, the 10-year marriage requirement is waived). People receiving survivor benefits can switch to their own benefit later if that’s larger, and vice versa.
Pro tip: Your ex must be at least 62 for you to receive a divorced spousal benefit, but does not need to be receiving his or her own benefit. (That’s different from regular spousal benefits, which typically require the primary worker to apply before the spouse can receive anything.) Survivor benefits are based on what your ex was receiving or would have received at full retirement age. (If your ex delayed starting benefits past full retirement age, the survivor benefit is increased by those delayed retirement credits.) If you start benefits before your own full retirement age, however, the amount you get will be reduced.
11. Use A Do-Over
If you change your mind within a year of applying for Social Security, you can withdraw your application and pay back everything you’ve received in benefits. That will restart the clock on your benefits so you can receive the 7% to 8% annual increase from delaying your application. You can do this only once in your lifetime, and you can’t withdraw your application after 12 months.
Pro tip: Withdrawing your application is different from suspending your benefit. You can suspend your benefit orally or in writing any time after reaching full retirement age. To withdraw, you must fill out Social Security Form SSA-521 within a year of applying and pay an amount equal to all the benefits you and your family have received, including any Medicare premiums withheld from your checks.
12. Born Before 1964? Get $3,600/year Off Your Mortgage With The Brilliant Government Sponsored "HiRO" Program
Banks Don't Want Homeowners Knowing This
Still unknown to many is a brilliant Government sponsored program called the High LTV Refinance Option (HiRO) that could benefit millions of Americans and reduce their payments by as much as $3,600 per year! You could bet the banks aren't too thrilled about losing all that profit and might secretly hope homeowners don't find out before the rules change.
So while the banks happily wait for this program to end, experts are making a nationwide push and urging homeowners to take advantage. This program is currently active as of 2021, but the rules could change soon. But the good news is that once you're in, you're in. If lowering your payments, paying off your mortgage faster, and even taking some cash out would help you, it's vital you act now and see if you could qualify for HiRO or a better rate in today's marketplace.
How Do I Qualify?
Step 1: Click your state on the map to instantly check your eligibility for free.
Step 2: View your new lower rate and save money! Click here to see your new low rate.
Select Your State:
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