Are you worried about your retirement security? Discover the $16,728 social security bonus and how to maximize its benefits for your future. You can now enjoy greater financial freedom in retirement!
What is the $16,728 Social Security Bonus?
The Social Security Bonus of $16,728 refers to a strategy for maximizing one’s Social Security benefits. By delaying the start of benefits until age 70, retirees can increase their monthly payments and potentially receive a lump sum payout. This can be beneficial for those who have sufficient savings or other sources of income to support themselves in the meantime.
Delaying Social Security benefits can result in a permanent increase in the amount received each month, up to 8% per year beyond full retirement age. This can add up to a significant amount over time, including the potential for a lump sum payout of up to six months of retroactive benefits. However, the decision to delay benefits should be carefully considered based on individual circumstances such as life expectancy and financial stability.
A key factor to consider is the breakeven point, or the age at which the higher monthly payments from delayed benefits will surpass the total amount that would have been received if benefits had been started earlier. Pro Tip: Seek financial advice to determine if delaying Social Security benefits is a wise decision for your retirement planning.
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How to Qualify for the Social Security Bonus
To be eligible for the $16,728 Social Security Bonus, you must qualify for the program. This bonus is aimed at encouraging delayed receipt of Social Security benefits. Here’s a 3-step guide to qualify for the bonus:
- Delay taking your benefits until age 70.
- Earn higher wages to increase your Social Security payments.
- Monitor your earnings record to make sure it’s accurate.
Notably, you may need to maximize your lifetime earnings or seek professional advice to help you make informed decisions that align with your financial goals.
According to Motley Fool, over 97% of retirees don’t receive the full Social Security benefit available to them.
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Factors That Affect the Social Security Bonus
Factors That Influence the Social Security Bonus
Social security bonus is an amount paid to individuals who delay their social security benefits to a certain age. Factors that determine the bonus include individual earnings, employment history, and the age at which the individual applies for social security benefits. To maximize the bonus, individuals should delay their social security benefits beyond the normal retirement age.
Here are six points that affect the social security bonus:
- Delaying social security benefits until after the full retirement age (FRA)
- Increasing lifetime earnings by working more years or earning more money per year
- Receiving social security disability payments before retirement age
- Qualifying for widow or widower benefits
- Getting divorced but was married for at least ten years
- Receiving government pension benefits
It is essential to note that social security bonus is not the same as social security retirement benefits. The latter is calculated based on one’s average monthly earnings over 35 years. The former, on the other hand, is a reward granted to those who defer retirement.
It was not until 1972 for the amendment of the Social Security Act to include the social security bonus. Before this, individuals were only entitled to social security retirement benefits. The amendment aimed at encouraging Americans to work longer and reward them for doing so.
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Claiming the Social Security Bonus
When it comes to maximizing your Social Security benefits, claiming the bonus can be a wise choice. This option enables you to receive a lump sum payment valued at up to $16,728 on top of your regular Social Security income. By delaying your benefits until age 70, you can enjoy a higher payout, which means a bigger bonus. However, to qualify for this bonus, you need to have reached the Social Security Full Retirement Age. Claiming the Social Security Bonus is a smart financial decision that can help you enjoy a better retirement life.
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FAQs about What Is The $16,728 Social Security Bonus?
What is the $16,728 social security bonus?
The $16,728 social security bonus is a lump-sum payout that some retirees are eligible for under a special provision of the Social Security Act.
Who is eligible for the $16,728 social security bonus?
The $16,728 social security bonus is available to retirees who have reached full retirement age and have chosen to delay receiving their Social Security retirement benefits beyond that age.
How does one qualify for the $16,728 social security bonus?
To qualify for the $16,728 social security bonus, you must have delayed taking your Social Security retirement benefits beyond your full retirement age. You must also be at least 66 years old.
What is the maximum amount one can receive from the $16,728 social security bonus?
The maximum amount one can receive from the $16,728 social security bonus is $16,728. This is a one-time lump-sum payout that you will receive in addition to your regular Social Security retirement benefit.
When will I receive the $16,728 social security bonus?
You will receive the $16,728 social security bonus in your first Social Security check after you apply for and are approved for the bonus. The bonus payment may take up to three months to appear in your account.
Is the $16,728 social security bonus taxable?
Yes, the $16,728 social security bonus is taxable as regular income.