The start of a new year often inspires us to focus on financial goals like reducing debt, boosting savings or cutting unnecessary expenses. However, it’s also the perfect time to prioritize Social Security planning. While retirement may seem far off your actions can significantly impact your future benefits. Here are three essential Social Security moves to make before January ends.
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1. Verify Your Earnings Record
Your Social Security benefits in retirement are calculated based on your earnings record. If there are errors or missing income it could result in a lower monthly benefit potentially for life.
Take these steps to ensure your record is accurate:
- Access Your Earnings Statement: Create an account on ssa.gov to view your electronic earnings statement. If you’re 60 or older you should also receive a physical copy annually.
- Review Carefully: Check that all reported income matches your records. If you find discrepancies, contact the SSA to investigate and correct them.
By addressing inaccuracies now you’ll protect yourself from surprises when it’s time to claim benefits.
If you’re interested in understanding the details, keep reading. Don’t miss our guide on 2 Groups of Social Security Beneficiaries Will No Longer Receive Payments This Month for insights into recent changes affecting Social Security payments.
2. Understand Your Full Retirement Age and Projected Benefits
Full retirement age (FRA) is the age at which you’re eligible to receive your full Social Security benefit without reductions. For individuals born in 1960 or later FRA is 67.
How to prepare?
- Check Your FRA: Confirm your FRA based on your year of birth.
- Estimate Your Benefits: Use your earnings statement to see what your monthly benefit will be at FRA. The closer you are to retirement the more accurate this estimate will be.
Why is this information crucial? If your projected benefit falls short of your retirement needs you can use this insight to adjust your savings strategy. For instance you might decide to increase contributions to your IRA or 401(k) to supplement your Social Security income.
3. Strategize to Boost Your Income
Earning more during your working years doesn’t just improve your current financial situation, it also increases the baseline for calculating your Social Security benefits.
Here are a few strategies:
- Pursue Higher Earnings: Consider seeking a new job, acquiring skills for a promotion or negotiating a raise.
- Start a Side Hustle: Extra income from side gigs counts toward your Social Security earnings as long as you report it to the IRS.
By setting income goals for 2025 and taking steps to achieve them you’re not only securing a stronger financial present but also a more stable retirement future.
Take Charge of Your Social Security Future
While the beginning of the year can feel busy, prioritizing these Social Security moves is well worth your time. Ensuring the accuracy of your earnings record, understanding your projected benefits, and increasing your income can all contribute to a more secure and comfortable retirement. Take action now to set yourself up for long-term success.
For additional information on related financial benefits, explore our article on 2 Changes Under the Donald Trump Administration That Could Affect Your Social Security, where we discuss how policy changes could impact your benefits.
FAQs About Social Security Moves
1. How often should I check my Social Security earnings record?
It is recommended to review your earnings record annually to ensure its accuracy and catch any discrepancies early.
2. Can I boost my Social Security benefits if I’m close to retirement?
Yes, by working longer, delaying your claim past full retirement age or increasing your income, you can still enhance your benefits.
3. Does part-time or freelance income count toward Social Security?
Absolutely. As long as your income is reported to the IRS it will be included in the calculation of your benefits.