By Diane Lee (WSPA)
Looking to maximize your social security checks in retirement?
There are a number if free tools that could help you get a larger check back from the government when you retire. The newest one is a calculator that explains how to maximize your social security benefits by AARP.
You can also check out how working will affect your benefits by going here.
And while those links are most useful to people who are near retirement, we got expert advice on why everyone needs to focus on their social security statements no matter the age.
Knowing how the government calculates your checks is key. Here are the facts:
Once each year’s earnings are indexed for inflation, your highest 35 years of earnings are tallied. IF you worked more than 35 years only the highest 35 will count. If you worked less than 35 years, the missing years will count as zeros. The 35 years of indexed earnings are totaled and divided by 420 (35 x 12 months) to arrive at your average indexed monthly earnings.
This helps you weigh whether you want to supplement your income, or not chose to go part-time, so that you can maximize your benefits.
And Certified Financial Planner Kyle Atkins says it’s also crucial to check these statements to make sure they’re correct so you get credit for the right salary.
“What can happen is it not get uploaded probably, it not get sent to Social Security properly, so I’ve had a year where it showed I didn’t make any income. Well remember, you can fix it, so it’s not the end of the world,” he said.
