Social Security has always been a key economic support in the United States. For millions of retirees, it represents their main source of income. However, recent data reveal that the program's situation is much more complex than people usually think.
Not all citizens automatically qualify to receive Social Security payments. What's worse, some could be losing money by not understanding how and when to apply. The consequences of making hasty decisions can be long-lasting.
The age when you apply for Social Security makes the difference
Many workers choose to request their payment at age 62, the minimum age allowed. However, this means accepting a significant reduction in the monthly amount. To receive 100% of the benefit, people must wait until full retirement age, which varies depending on the year of birth.
The most profitable strategy is usually to wait until age 70. In that case, monthly payments can increase by up to 24%, an important long-term benefit. People must evaluate this decision carefully, since it can determine future financial stability.
In addition, every year a cost of living adjustment (COLA) is applied. This factor tries to offset the impact of inflation, although many times it isn't enough to keep the same purchasing power.
What is that extra bonus of up to $900 and how can you access it?
Beyond the usual payment, some beneficiaries receive additional money. This amount can exceed $900 and isn't available to everyone. Its origin is in the program known as Supplemental Security Income.
SSI is aimed at adults and children with disabilities or blindness, as well as people over 65 with low income. Those who qualify can receive this money in addition to their regular retirement payment. In other words, both benefits can be combined.
To access SSI, people must show a precarious economic situation. The beneficiary must not have enough resources to cover basic needs such as food or medical care. If they meet these criteria, they can receive this extra monthly payment.
Social Security, although essential, isn't an automatic right for everyone; there are rules, deadlines, and options that people must know. Not understanding them can mean losing thousands of dollars in the long run. In times of economic uncertainty, every decision matters more than ever.