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Yahoo
17-02-2025
- Business
- Yahoo
4 Key Signs Your Social Security Check Might Be Smaller Than You Thought
Whether you're currently joining the 71.6 million qualifying Americans who are currently receiving Social Security benefits, or will be among them in the future, you may want to start estimating how much you'll receive each month. Having this steady source of income during retirement can provide you with some relief, knowing you'll have money coming in to help pay expenses. Learn More: Find Out: 4 Low-Risk Ways To Build Your Retirement Savings in 2025 However, there are several reasons why you may be surprised (or even disappointed) that your Social Security payments are smaller than you expected. How much you earn throughout your working years plays a huge role in how much you'll receive in Social Security benefits. That's because a portion of the tax typically goes towards Social Security. The less you pay, the less you'll receive in benefits. You can claim Social Security benefits as early as age 62 and still work, but it could cost you if you earn over the income threshold set by the Social Security Administration. As of 2025, if you earn over $23,400, $1 of your paycheck will be deducted for every $2 you earn over that amount. If you've reached full retirement age (typically 67 years old), the income threshold goes up to $62,160. Then, your paycheck will be $1 less for every additional $3 you earn. Read Next: Although you can claim Social Security benefits starting at age 62, your monthly paychecks will be smaller by a certain percentage. For example, if you were born after 1960, your benefit could be 30% lower than if you were to claim benefits starting at age 67, your full retirement age. For example, if you expected to receive $2,500 in monthly benefits, your paycheck could go down to $1,750 per month, a $800 a month difference. Some may opt to delay taking their benefits until age 70, when the monthly paychecks could be higher. You'll receive 8% added to your initial benefit amount each full year you delay taking Social Security benefits. Say you decide to start taking Social Security checks at age 68. Using the previous example, your paycheck could go up to $2,700 each month, or an additional $200. The Social Security Administration calculates the amount you'll receive based on your highest 35 years of earnings. It will average your earnings and use a complex formula to come up with your payments at your full retirement age. For instance, if you decide to retire or take time off between careers, there may be some earning years where the income on record is $0. This will affect how much you will receive because having no income will bring down the average. The less you've worked, the more zero-income years will be factored into your average and could mean a much smaller Social Security paycheck. More From GOBankingRates5 Subtly Genius Moves All Wealthy People Make With Their Money 4 Low-Risk Ways To Build Your Savings in 2025 Here's How You Can Stop Paying Interest on Your Credit Card for a Full Year This article originally appeared on 4 Key Signs Your Social Security Check Might Be Smaller Than You Thought Sign in to access your portfolio
Yahoo
09-02-2025
- Business
- Yahoo
3 Ways the Definition of ‘East Coast Rich' Differs From ‘West Coast Rich'
Americans often stereotype the country's East and West coasts, portraying the East Coast as uptight and stressed and the West Coast as laid back and maybe a little flaky. That's according to psychographic profiles from Greenbook, a blog published by the American Marketing Association. But as a trending social media feud demonstrates, East Coast versus West Coast rivalry doesn't end there. Content creators are making challenge videos comparing East and West on everything from weather to real estate to wealth. Here are three ways East Coast rich and West Coast rich differ, according to one TikTok user who weighed in on the topic. Check Out: Read Next: 5 Subtly Genius Moves All Wealthy People Make With Their Money The term 'nouveau riche' has been around for over 200 years, but it's a fitting term for how many Americans see today's West Coast rich — wealth recently earned (probably in the tech industry) and unapologetically on display, as the TikTok account @indyanna.a noted in a recent video. East Coast rich, on the other hand, is associated with old money. It's not surprising, considering the East Coast's role in the founding of America and New York's position as the seat of finance. See More: In her video, @indyanna.a said that East Coast wealth didn't just happen — it was curated through inheritances and trust funds. 'These people are aware of what money can and cannot do,' she said. 'And they continue to pass down that knowledge in their families.' Not so on the West Coast, @indyanna.a said. Ushered in by the tech boom, money has just recently become a thing there. That means the people who have it, earned it. East Coast rich conjures thoughts of an elitist aristocracy where wealth determines an individual's position in the social hierarchy. Although @indyanna.a argued that West Coast rich has no social hierarchy, that could be changing. Despite their self-made wealth and populist appeal, it's difficult to argue against the possibility that a new ruling class of tech elite is narrowing the gap between East Coast and West Coast rich. More From GOBankingRates5 Subtly Genius Moves All Wealthy People Make With Their Money 4 Reasons All Retirees Should Have a Safety Deposit BoxThis article originally appeared on 3 Ways the Definition of 'East Coast Rich' Differs From 'West Coast Rich'
