Social Security is an important body established to provide aid to citizens who are disabled, retired, and/or survivors of deceased workers. It’s managed by the Social Security Administration (SSA). In other words, this department is nothing less than a support system for the citizens of America.
The International Labour Organization’s objective is to provide preventive medical care, maintain income in case of involuntary loss of earnings (jobs), death, or similar situations, and grant supplementary incomes to people with family responsibilities. However, the Social Security benefits alone may not be enough to cover day-to-day living expenses.
So, what can old citizens of the nation or the ones in need do if their check falls short between months? One of the solutions includes applying for Supplemental Security Income (SSI). This particular body provides monthly benefits for people with limited income resources.
As per the scheme, an individual must be above the age of 65, blind or even partially blind, and living with a medical condition that prevents them from working for at least one year. While the benefit amount under this scheme may vary, the standard federal payment is $967 per month for one person and $1,450 for couples. Some states offer extra payments, potentially increasing your monthly income.
However, this criterion is different from disability benefits. For an individual to receive benefits from SSA, they must be at least 62 years old and have worked at least 10 years. The mentioned age requirement may also vary depending on the year of birth, but 62 is the general minimum age.
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It is important to keep in mind that if you collect your benefits from the age of 62, it might not be much; hence, starting April 2025, a person should delay their retirement. The maximum Social Security payment can reach up to $5,180 in 2025, but this amount is hard to achieve regularly.
SSA explained on its website, “The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2025, your maximum benefit would be $4,018.”
It further mentioned, “However, if you retire at age 62 in 2025, your maximum benefit would be $2,831. If you retire at age 70 in 2025, your maximum benefit would be $5,108.”
Furthermore, to budget for retirement, start by summing up your monthly essentials—such as housing, car loans, insurance, and utilities. Next, consider future costs, including one-time purchases, possible inflation, groceries and utilities, travel and leisure, and so on.
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Moreover, financial advisors like BlackRock suggest testing a trial budget for a few months to better understand and adjust your spending. Other important questions to consider while planning your post-retirement budget include: How long is left on your mortgage? Will healthcare costs rise? Will hobbies or travel increase expenses? Could inflation impact your budget? Even in retirement, taxes matter. Withdrawals from traditional IRAS, 401(k)s, and pensions are taxed as income.
As per the Congressional Budget Office, there is an average increase of $360 per month for retired workers and an average increase of $700 per month for spousal beneficiaries. For the widows, the checks have increased by an average of $1,190 per month, as per Nasdaq.
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Therefore, feel free to reach out to the SSA for any questions and support regarding your benefits or claiming the Supplemental Security Income. Be informed, be aware, and plan your money for a secure and safe financial future.
