Are you ready to boost your Social Security benefits? Discover three key actions that can secure larger checks in retirement.
Review Your Earnings Record
Ensure your future Social Security benefits reflect your true earnings by regularly reviewing your earnings record. The amount you receive at retirement is based solely on your lifetime earnings history, making it crucial to verify that these records are accurate. Underreported income can significantly reduce your benefits, leaving you with less than you deserve.
To get started, create an account on the Social Security Administration's website, where you can access and review your earnings statements annually. This not only allows you to check for discrepancies but also gives you an early estimate of the benefits you can expect in retirement. By staying proactive, you can avoid unpleasant surprises later on.
Participate in the Gig Economy
Supplementing your income through the gig economy could be a game changer for your retirement savings. Engaging in side jobs can increase your overall earnings, which can translate into higher Social Security benefits. If your total income remains below the annual wage cap of $176,100, all gig earnings count toward your future benefits.
For instance, if you earn $80,000 at your primary job but take on a side gig paying an extra $500 a month, by reporting and paying taxes on that income, you would be effectively adding $6,000 to your Social Security earnings record each year. This can have a significant impact on the benefit amount you receive in retirement, potentially leading to substantial increases in your monthly checks.
Frugality in your primary job may limit your ability to save, but these side gigs offer a means to contribute more to retirement accounts like your IRA or 401(k). This not only ensures you are better prepared for retirement, but it also increases your financial stability in the short term. Popular platforms like Uber, Lyft, and Upwork provide excellent opportunities to engage in the gig economy.
Invest in Your Health
Prioritizing your health is another strategic move to maximize your Social Security income later on. While improving your health does not directly increase your monthly Social Security check, a longer life can significantly enhance your lifetime earnings from Social Security.
By focusing on health improvement tips, such as maintaining a balanced diet, exercising regularly, and managing stress effectively, you can enhance your longevity and quality of life. Health investments today may lead to fewer medical expenses down the road, allowing you to keep more of your retirement income available for enjoyment rather than medical bills. It’s worth exploring activities like yoga, meditation, or simply dedicated time outdoors for mental health benefits. This holistic approach ensures you are not only living longer but living healthier, which could allow you to benefit from your Social Security checks for years beyond what you might have otherwise considered.
Conclusion
These three tactics—reviewing your earnings record, participating in the gig economy, and improving your health—represent actionable steps you can take to set yourself up for a financially secure retirement. If you expect Social Security to be a primary source of income during your senior years, taking the initiative now can result in more significant benefits later on. Don’t wait. Implement these strategies today for a more prosperous retirement tomorrow.