In the United States, there is no official retirement age or set age to claim Social Security benefits, allowing individuals to choose when to retire and when to start receiving benefits. Delaying Social Security benefits until age 70 can result in a generous monthly benefit, as payments increase by 8% for each year beyond full retirement age that filing is delayed. The maximum monthly benefit at age 70 is $4,873, but individuals must have worked for 35 years at a high wage to qualify for this amount. Social Security benefits are funded by payroll taxes, with a wage cap established each year.
Delaying Social Security benefits until 70 can be beneficial for individuals who are not confident in their retirement savings. Increasing wages toward the end of a career can also boost monthly benefits. Claiming benefits at age 70 can still result in a significant paycheck, even if an individual is not eligible for the maximum amount.
The Motley Fool, a financial news and analysis source, recommends considering strategies to maximize Social Security benefits. Learning how to increase benefits through little-known secrets could provide retirees with added income to support their retirement lifestyle. By understanding these strategies, individuals can retire confidently with peace of mind about their financial future.
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