Is the SSA providing $16,728 annual bonuses? Here’s what the bonus actually means

Beneficiaries may hear about a potential $16,728 bonus from the SSA, but this is not officially authorized. Benefits are calculated on the top-earning years.

The Social Security Administration (SSA) is tasked with doling out monthly payments in support of dependent beneficiaries. Multiple publications have claimed that the beneficiaries could soon receive a “$16,728 bonus” annually.

Representational image. (Unsplash)

Is the claim true?

Although no additional payment has officially been authorized by the SSA, what these publications mean to say is that beneficiaries could receive an increment of this amount in their benefits if they were to adopt certain means. Hence, this amount is not a guaranteed increment promised by the SSA but rather represents the possibility of what beneficiaries could be claiming.

How can I maximize my benefits?

Social Security benefits are usually calculated based on the beneficiary’s 35 highest-earning years. If a beneficiary works for a smaller duration than what’s prescribed, the missing years are counted as ‘zero’ which, needless to say, impacts the benefits later accorded. Hence, make sure you work for a minimum of 35 years early in life to be able to claim as much benefit later on.

The current full retirement age (FRA) alternates between 66 and 67 depending on a beneficiary’s year of birth. If a beneficiary were to start claiming payments after their FRA at the age of 70, their monthly benefit would be boosted by 8% for each additional year. Hence, claiming benefits late in life helps secure better payments.

Spousal and survivor benefits also fall under the purview of the SSA. Coordinating with your spouse and claiming benefits with them, especially if they earn more, can also improve the amounts you become entitled to earn.

For any queries or to gain reliable first-hand information on the matter, visit the SSA’s official website or call 1--800-772-1213.

By Stuti Gupta