2022-11-25 12:34:00

Do You Know All 4 of These Social Security Secrets?

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Nasdaq
By The Motley Fool

If you want to get bigger Social Security checks when you retire, it's important to know everything you can about the federal-government program. Unfortunately, it can be tough to get the information you need, and many people are still in the dark when it comes to key aspects of Social Security that determine the size of your benefits. Below, you'll learn more about four essential parts of Social Security that aren't as well-known as you might think.

1. Earning more raises your benefits -- but the amount of the boost depends on how much you earn

Your top 35 years' worth of earnings history goes into determining your monthly benefit, so boosting your average earnings will increase the size of your Social Security checks. However, people with less income over their careers get a bigger boost from every extra dollar of earnings than higher-income individuals.

Specifically, the formula that determines benefit amounts adds $0.90 to your standard retirement benefit for every $1 in average monthly career earnings up to a certain amount, which is $1,115 for those turning 62 in 2023.

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