Managing finances in this economy is a challenging task. Most adults fail to accomplish a smooth running and management of their money. Due to this reason, early retirement remains a dream for many people in the United States. But things do not always have to be this dark and bleak. It is all about gathering the right amount of knowledge and making the right decisions. There are many different options available for the public to avail and enhance their expenditure power as well as save for retirement.

If you are someone who is struggling with finances, then it is time to look into the concept of social security bonuses. Continue reading this blog to understand what the $16,728 social security bonus is and how you can gain maximum profit from it.

What is the $16,728 Social Security Bonus?

If you have just stepped into the world of adulthood, there is a chance that you are completely unaware of how things happen and what certain words stand for. To ensure that you get a clear picture to the question, let us have a quick look at the various terms used in the world of finances and retirement funds.

Social Security Benefits

There is a special program conducted by the government of the United States to provide monetary benefits for the people after their retirements in old age, disabled people, and survivors.  

People most commonly assume that social security benefits are only valid for those people that have retired. However, as defined above, a certain amount is distinctly available and distributed amongst those people who are physically or mentally unwell along with those who are the remaining dependent survivors of a deceased family member.

How It Works

Suppose you work in an office where every month, a certain amount is deducted from your salary. This amount goes into a special fund that is managed by the federal state members and other important financial experts. These people are responsible for distributing the money amongst those who are in need of it. The social security management department ensures that it is given out to only those people who are genuinely eligible for the social security benefits.

The $16,728 Social Security Bonus

There are many different types of social security bonuses available that people can reap benefits from. To avoid any confusion, only the $16,728 Social Security Bonus is discussed.

As the name implies, a retired person is eligible to receive $16,782 every year after they retire through their social security bonus. Like most things in life, this amount is easy to get from the social security administration. There is a huge number of steps that every individual or couple needs to follow from the very beginning of their careers in order to receive around $17,000.

Despite popular belief, the concept of $16,728 per annum is not a hoax. Most people think that this is a made-up scheme created by financial advisors to lure and increase their customers. That is not the case. It is possible to get this amount after retiring but not everyone is eligible for it. In addition, families need to plan vigorously down to their last penny to be able to fall into this financial plan and successfully become eligible for the amount. In real life, this becomes impossible because there are many different unforeseen circumstances that come across our way in everyday life i.e. a couple may decide to take a divorce or one of the spouses may become terminally sick. Reasons such as these can result in the failure to execute this plan.

When does Social Security Recalculate Your Benefits?

Every year after the social security administration (SSA) receives your financial and income statements, they judge and recalculate the benefits that they will offer you. The various tax documents such as tax returns that the SSA collects from you are where they get all the required information.

Initially, the SSA considered your highest income of 35 years and an average number was calculated from it. This calculated number would more or less determine the amount of benefit that you were to receive in the future. If for example, the last 35 years of your career generated large sums of income for you, then chances are your social security benefit number will be high as well. This is because the average of the income will increase and it will create a positive impact on the total social security benefit.

 There is another amount that must be kept in mind while calculating your benefits. SSA always considers the cost of living adjustment into the equation of social security benefits. The abbreviation used for this COLA. This number is based on any existing inflation at the time of receiving the benefit. Currently, it makes up for about 1.3%. This means that an extra $13 will be added to the total of your social security benefit. The amount may not seem like much, every tiny drop makes a difference.

When Can You Claim Social Security Retirement Benefits?

This is one of the most frequently asked questions by people who are a part of the social security benefits. A distinct age is known all across America for retirement. There are many different rumors going around in the industry about when a person is eligible to claim social security retirement benefits. It is important to remember that there are several different factors that need to be considered when claiming the social security retirement benefits.

The most important factor to claim the social security retirement benefit is age. If you claim your social security benefit at the age of 62, the amount of your benefits will reduce. This means that you need to make a thorough breakeven analysis before deciding to claim your social security benefit. Here are the most crucial things that happen to the total amount of your social security benefit depending on the age and the time of retirement.

1) Claiming Before 62:

If you decide to withdraw your social security benefits before the age of 62, the total percentage of benefits you receive will decrease. For example, if you apply for the amount three years/thirty six months before turning 62 years old, your social security benefit will reduce by 6.7%. This means that on a monthly basis you will receive 0.56% less than the amount you were to receive had you not taken the social security benefit early.

People claim their social security amounts earlier than their retirement in many different cases. Some scenarios may be because of health issues or because of many other similar reasons. If you want maximum profit from social security benefits, it is strictly advised not to claim it before the age of 62.

2) Claiming at 62:

Most of the people tend to claim their social security benefits at the ripe age of 62 years. It is the perfect age to claim a social security bonus. You will receive the social security bonus but there will be little to no bonuses in the future.

3) Claiming After 62:

Your credit stops increasing around the age of 70. This means that if you make your social security claim between the ages of 62 to 70, you will gain the maximum profit in this situation. In some cases, the amount increases by 8% per annum. The longer you wait between these 8 years to claim your insurance, the higher the percentage will get but only until the age of 70, as mentioned before.

Spouses Claim to Social Security Bonus

If you are a spouse who earns less than your significant other does, or simply have not worked in a long time, then as per the law, you are also entitled to claim the social security bonus of the working spouse. At full retirement age, at least half of the amount received can be given to the spouse, provided that they fit in the bracket. It is important to remember that if the eligible person does not complete their working time and takes an early retirement, then their spouse benefits will also have a reduced percentage in the total social security bonus.  

Note: Spouses can only have a claim to the social security bonus if the primary earner of the social security bonus has claimed the amount and is actively using it.

Claiming Benefit despite Working

Some people just hate sitting at home and doing nothing even after they retire. If you are one of those people and are still earning money after the full age of retirement, then do not fret. This is because you have a full claim to your social security benefit if you worked continuously for 62 years. You can claim it any time you want in the time-span between 62 to 70 years.


There are some interesting aspects to the $16,728 social security bonus. The unfortunate thing is that no one is aware of what they can claim and use the social security benefits system to their favor. The article above discusses in detail about what the $16,728 social security bonus is. Sit down with a financial expert while making plans for the future and after retirement. This way you can relax in old age and reap maximum benefits of your hard work.