Social Security: 3 Things That Affect the Size of Your Benefits

If you're like most Americans who are approaching retirement age, then you've paid into the Social Security system for decades. With this in mind, you'd be excused for wanting to maximize how much you get in return once you become eligible for payouts. But how do you do this?

It turns out there are three factors that affect the size of your Social Security benefits. First and foremost, your benefits are a function of how much eligible income you earned during your working life. Second, they rise or fall depending upon when you elect to receive them. And third, before attaining normal retirement age, benefits are reduced if other income sources exceed a specific threshold.

Suffice it to say, understanding how these variables affect you is critical to ensuring a comfortable retirement. To learn more about the topic, check out the following video, in which Motley Fool contributor John Maxfield discusses the ins and outs of maximizing your Social Security benefits.

How to get even more income during retirement
Social Security plays a key role in your financial security, but it’s not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.


Read/Post Comments (1) | Recommend This Article (33)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 12, 2014, at 6:07 PM, bsteaves wrote:

    One Social Security benifit denied to thousands of American is access to the Social Security web site.

    Their only mistake- they live overseas. BTW the IRS

    web site is fully functional overseas.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2950223, ~/Articles/ArticleHandler.aspx, 9/2/2015 1:19:43 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

John Maxfield

John is The Motley Fool's senior banking specialist. If you're interested in banking and/or finance, you should follow him on Twitter.

Today's Market

updated Moments ago Sponsored by:
DOW 16,246.32 187.97 1.17%
S&P 500 1,931.72 17.87 0.93%
NASD 4,694.94 58.83 1.27%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes