4 Social Security Strategies to Bankroll Your Retirement
For roughly 66 million Americans, Social Security plays a vital role in helping them cover their daily and monthly expenses once they've retired or are nearing the end of their careers and will soon retire. But the monthly checks aren't always huge amounts, and there are ways for retirees to increase their benefits by taking certain measures. Here are four Social Security strategies to bankroll your retirement.
The full benefits that a retiree is entitled to are called the primary insurance amount (PIA). Retirees can claim their PIA at their full retirement age (FRA), which is 67 for those born in 1960 or later. The Social Security Administration (SSA) calculates a retiree's PIA by looking at the number of years they have worked and therefore paid Social Security taxes. The SSA looks at a person's earnings over a period of 35 years to help calculate the PIA. If a person doesn't have 35 years of earnings, then a zero goes in for that year, which drastically reduces benefits. So you'll want to make sure you've worked for at least 35 years.
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Source Fool.com
