3 Tips to Increase Your Social Security Benefits | Smart Change: Personal Finance | wiscnews.com
How big your payment is plays a big role in just how much of your expenses Social Security will cover in retirement. And maximizing your benefit will greatly depend on these three factors.
Your Social Security payments are calculated by using the average indexed monthly earnings (AIME) of your highest 35 wage-earning years, up to a cap . If you haven't worked 35 years, the ones that you didn't earn any income will count as zeros. For example, if you worked 20 of the 35 years, your 20 years of wages will be added up along with 15 zeros, and the average will be taken for the 35 years.
If you work for exactly 35 years, then all of your years of earning money will count, and this will ensure that you don't have any zeros that can drag your payment down. Spend more than 35 years in the workforce, and your lowest wage-earning years will be excluded from this calculation, which should bring your average up. So if you started work at 22 and stopped at 62, only the …
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