Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 2 months ago

If I hold off and don't retire until age 70 I will receive $1550 a month.  How do I increase that amount ?

I have 23 years until age 70 $1550 is not much now so be even less in 23 years.  How could I increase the amount to $2500 or more .  Would a second part time job do it.  

9 Answers

Relevance
  • 2 months ago

    Social security?  My philosophy is that It is what it is.  Don't make employment decisions based on how it might affect social security.  That doesn't mean it won't be a good idea to advance and move up, or even take a second job, for other reasons.

    For retirement, I'd suggest saving 10% or more of your gross earnings, putting it into a Roth IRA (or 401k if you have one at work), and making the investment a simple low cost index funds like the Vanguard Index 500.  Resist the thought that the market is at record highs, and can't go higher.  Make steady contributions.  That worked out very well for me.  Around year 2000, near the peak of the internet boom, I felt like a dummy my old-style investing, thinking why shouldn't I make serious money by getting some Enron stock.  Now I feel like a ******** genius.

  • ?
    Lv 7
    2 months ago

    I assume you're talking about Social Security.

    The amount is based on your 35 highest years of income. Right now you've got some zeros in that calculation, but as you continue to work the number will increase.

    Don't worry too much about inflation, the payout will be adjusted for that. (However, there are concerns about which measure of inflation best reflects the expenses relevant to a retired person)

    You should also save money on your own in addition to what you're contributing to Social Security. There are tax-free types of savings account for that purpose.

  • Anonymous
    2 months ago

    Several ways.

    1.  Higher wages create a higher social security amount - so working a second job - working a higher paying job - or working more hours would all increase your income and increase your social security.

    2.  Find a company with a good pension plan.  By the time I retire from my current company, I will get $1,200 per month from their pension plan.  So - find a company with a great pension plan and get a job. This pension is IN ADDITION to any social security you might qualify for.

    3.  Invest in a retirement fund.  An employer's 401K plan is great because most employers will match up to a certain percent of what you put in.  This means you can double your investment with employer contributions.  There are also options that you can do without your employer by talking to your banker about retirement account options.  Saving some of your own money now will increase what you have at retirement.

    4.  Own your home.  If you own your home - you can look into the option of a reverse mortgage to get extra income when you retire.

  • 2 months ago

    Earn a higher income in the next 23 years than you are earning now.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 2 months ago

    The best option is to increase your income by either getting a higher paying job, working more hours, or getting a 2nd job.

    Social security is computed based on your 35 highest paid years (adjusted for inflation). If you haven't worked for 35 years then you will have a bunch of years with $0 in the calculation pulling your average down.

    If you've already worked 35 years then every year that you earn more than  your lowest year you replace that low year with that year's salary in the calculation.

    Also save for retirement in other ways such as a 401k or IRA.

  • 2 months ago

    1. Increase your salary significantly. The top 35 years of your salary are used to determine your SS benefits. 2. Save money outside of the SS system in an IRA, Roth or 401k or some combination of those.

  • Anonymous
    2 months ago

    Get a second part time job and invest every single paycheck.

    Stop relying on the government to provide for you.  Social security was never meant to be one's sole source of income in retirement.    So stop spending everything you make and start planning how you will take care of your own basic needs.

  • ?
    Lv 7
    2 months ago

    You earn more between now and then, which you will of course do.

  • Matt
    Lv 7
    2 months ago

    no, you need to look for something that is a hedge against inflation - e.g. gold, shares, property, etc

Still have questions? Get answers by asking now.