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Even if you manage to build yourself a nice nest egg for retirement, it’s quite possible that you’ll end up depending quite heavily on Social Security when your time in the workforce is over. It’s best to do what you can to get some of the best monthly perks.
One way to get more money from Social Security is to claim benefits strategically. For example, if you apply for Social Security at age 70, you will receive significantly more monthly benefits than if you joined earlier.
But there are steps you can take today To get higher Social Security benefits for life. This is also a move that could help significantly improve the short-term financial situation.
Image Source: Getty Images.
Dive into the gig economy
According to a Zapier report released in June 2022, 40% of Americans were holding back their side hustle. Also, if you’re looking to increase your monthly Social Security benefits for the rest of your life, you may want to jump on the bandwagon.
The Social Security benefits you are eligible to receive when you retire depend on your wage history. But it’s not just the salaried worker’s wages that calculate future monthly benefits.
Whether or not you deduct taxes from your wages for a side job, that income counts toward future Social Security benefits as long as the IRS knows about it. For clarity, income must be reported to the IRS even if paid on a freelance basis.
For example, let’s say you earned an extra $5,000 from your side business this year. This $5,000 will be added to his 2023 wages when calculating Social Security benefits.
SMART MOVEMENT EVERYWHERE
These days, many people struggle to pay their bills because of inflation. Many are cutting retirement savings and other goals to make up for the rising cost of living.
Getting a side hustle not only prepares you to receive more money from Social Security, but it can also improve your financial situation in the short term. You may be able to pay your bills without incurring the risk of You may also be able to continue funding your IRA or 401(k) plan rather than suspending contributions. So, if you’re willing to put in the time and effort, a side hustle can pay off in the short term and in the future.
Additionally, there is talk that a recession could hit the economy in the not too distant future. That’s when having a second source of income can help. So even if you’re not the type of person to go out and do trendy things, it’s worth being part of the gig economy for the many financial benefits associated with it.
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