This month, some people who get Social Security may get checks that are bigger than normal, but they have to meet certain requirements. Incomes can change a lot from month to month in the U.S. Retirement checks for some people will go up a lot in September.
In some places, seniors can get more than $24,000 a year in pensions. In others, it may be much less. A person’s amount of money is based on many things, like how much they made in the past and where they live. Since different states give seniors different amounts of money, some states stand out. We need to know why this is taking place.
Beneficiaries eligible to receive an above-average increase in Social Security checks in September
Because of how benefits are calculated, monthly increases in Social Security benefits are different from state to state. In some states, retirees get more benefits than others, and the date of the first application affects the real benefit amount. Still, it looks like the average amount given to people will be different, with some states getting bigger checks than others.
Some states may give people bigger Social Security benefits because of the way the benefits are calculated, which depends on when the person started getting them and how much they have earned over their lifetime.
A new study by The Motley Fool says that these factors may cause some states’ Social Security payments to be higher than others’. This is because, based on the cost of living adjustment (COLA), the median income in some states is much higher than in others.
This means that people in those states get more money from Social Security. Based on the report from The Motley Fool, these are the states that get the biggest median monthly Social Security checks:
- New Jersey: $2,100
- Connecticut: $2,084
- Delaware: $2,064
- New Hampshire: $2,039
- Maryland: $2,008
- Michigan: $2,005
- Washington: $1,992
- Minnesota: $1,982
- Indiana: $1,952
- Massachusetts: $1,946
It’s important to note that moving to one of these places doesn’t mean your Social Security payments will go up. Don’t forget that a person’s monthly benefits are based on their earnings past and the Social Security Administration’s (SSA) calculations, not on where they live.
Other strategies to maximize Social Security checks that beneficiaries need to know
As people age, they start to think about what they will do to make money when they can’t work anymore. Of course, Social Security checks can be helpful, but sometimes people don’t plan ahead and end up with an average monthly payment that isn’t enough to meet their needs.
If you want to get the most out of your Social Security checks so that you have enough money in the future, here are three important ideas you should start thinking about right away:
- It might not be enough to work for just 10 years. Plan to work for at least 35 years every time. The SSA figures out benefits by looking at the 35 years with the best earnings when adjusted for inflation. Your benefit amount will go down if you have less than 35 years of pay because of the number of years you have not worked.
- You can’t lose benefits because you didn’t work for a while; you have to work for at least 35 years. In addition, working after age 35 can improve your benefits by swapping years when you made less money with years when you made more.
- Focus on making as much money as possible. How much you pay in Social Security taxes over the course of your work has a direct effect on how much money you get paid.
- In states with better average wages, the median family income is more likely to be higher. Increasing your earnings can get you more benefits, as long as they don’t go over the $168,600 taxable earnings cap for 2024.
- You can choose the best age to start getting Social Security. Your monthly checks will depend on when you start getting Social Security payments. If you start getting benefits before your full retirement age (FRA), you may get up to 30% less each month.
- If you delay your benefits past your FRA, your payments could go up by up to 32%. The longest wait possible is at age 70. Before you decide to get benefits, you should think about how much money you have and how long you plan to live.