FIND out how to maximise your Social Security payments with one simple switch.
There are a number of benefits that Americans might be missing out on.
Some are concerned for the welfare program’s future amid Trump’s ‘Big Beautiful Bill’[/caption]
Retirees could be missing out on payments if they don’t make a simple switch[/caption]
It could leave millions of Americans receiving reduced payments.
A recent study found that only a quarter of Americans were aware of a simple switch that could see you maximise your payouts.
All you have to do is wait to receive your monthly payments until you’re 70.
The study by the American Association of Retired Persons found that a significant number of participants didn’t know how to maximise their payments.
For example, only 40 per cent of participants could identify the earliest age that you can start receiving Social Security benefits.
The eligible age for the majority of people is 62.
Others didn’t know crucial details about spousal payments, leaving them missing out in retirement.
However, the best way to make the most of your Social Security payouts is by delaying them until you’re 70.
While you can usually start claiming at 62, for every year you delay receiving your payment up until the age of 70, you receive a significant increase in the payment amount.
Boston University economist Laurence Kotlikoff told MailOnline that benefits taken for the first time at age 70 would be 76 per cent higher than if they were claimed at 62.
This could ensure that you receive higher benefits for the rest of your life.
However, it is important to note that this switch might not be possible for those who need the money earlier, for example if you have to retire early due to health issues.
The study also found that only 44 percent of those surveyed were aware that divorcees could collect retirements benefits based on their former spouse’s work record if they were married for at least ten years.
While holding out might be beneficial in the long-term, the majority of Americans have expressed concern about the future of its availability.
A poll by Gallup found that more than 75 per cent of US adults were very worried about the program’s fate.
Earlier this month, reports suggested that the Social Security retirement fund is set to run short in seven years.
This could see retirees facing 24 per cent benefit cuts as early as the end of 2032.
If this does happen, it could see a couple who both worked receiving $18,100 less each year if they retire at the start of 2033.
The worsening financial forecasts are partially a result of Donald Trump’s “Big Beautiful Bill” which could drain funds faster.
Around 70 million Americans currently rely on the program for monthly benefit checks,
Once the fund is depleted, benefits will then be cut to match incoming revenue as per federal law.
