2 Moves to Make in Your 40s to Get More Social Security in Your 60s
Key Points
When you’re in your 40s, you may not be so interested in Social Security, since you won’t be able to collect those benefits for another couple of decades. However, the moves you make (or don’t make) in your 40s could actually help determine how much Social Security you collect once you’re ready to retire.
If you’re hoping to get more Social Security than less, here are two key moves worth making in your 40s that could lead to larger benefits in your 60s.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
1. Boost your wages
By the time your 40s roll around, you may have a nice amount of experience in your industry. That could set the stage for you to chase promotions or better jobs that lead to higher pay.
Your Social Security benefits are calculated based on your 35 highest-paid years of income. So the more money you’re able to earn in your 40s, the more generous your retirement benefits might be.
2. Check your earnings record
Having an accurate wage record with the Social Security Administration (SSA) is important, since it affects your benefits formula. If the SSA is missing earnings for you, or if you have earnings that are underreported, it could lead to smaller retirement checks.
That’s why you should make a point of checking your earnings record every year. You can do so by creating an account at SSA.gov and accessing your earnings statements.
If any of that information looks wrong, you can work with the SSA to get it updated. You may have to provide tax returns, W-2s, and other documentation to get your wage record corrected. It’s best to check each year so that if you need to dig up that information, you’re more likely to have it or know where to get it.
Another advantage of checking your earnings record? You can get an estimate of your future Social Security benefit.
The closer you are to retirement, the more accurate that estimate is apt to be. But the number you see in your 40s can serve as a baseline, which could help with your retirement planning.
Social Security may end up being an important source of income once your career comes to an end. Even though you may not be eligible for benefits for quite some time, it pays to keep Social Security on your radar in your 40s. Growing your paycheck and keeping tabs on your earnings record could set the stage for larger benefits when you need them.
The $23,760 Social Security bonus most retirees completely overlook
If you’re like most Americans, you’re a few years (or more) behind on your retirement savings. But a handful of little-known “Social Security secrets” could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more… each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we’re all after. Join Stock Advisor to learn more about these strategies.
View the “Social Security secrets” »
The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
