Most people will not get the maximum social security benefit of $ 4,194. Why it doesn’t matter Smart change: Personal finance

Most people will not get the maximum social security benefit of $ 4,194.  Why it doesn’t matter  Smart change: Personal finance

(Katie Brockman)

Social security benefits are a lifeline for many retirees, so it makes sense to make sure you get as much as you can.

The average retiree collects about $ 1,657 per month in benefits, according to the Social Security Administration, but the maximum you can receive in 2022 is $ 4,194 per month.

While targeting the maximum benefit is not a bad idea, it is unrealistic for most people. You will need to meet several requirements to maximize your benefits, and some of them are extremely difficult to achieve.

The good news, though, is that it doesn’t matter if you can get the maximum benefit or not. No matter how much you earn, there are simpler ways to increase your social security.

Image source: Getty Images.

What is needed to reach the maximum benefit amount?

There are three main requirements to earn the maximum amount of social security benefit: work for at least 35 years, postponement of benefits and constant reaching the maximum limit of taxable earnings.

  1. Work for at least 35 years: The Social Security Administration calculates your benefits by averaging your 35-year earnings with the highest earnings in your career. .
  2. Delay benefits: You can claim benefits from the age of 62, but to receive as much as possible each month, you will have to wait until the age of 70 to start claiming.
  3. Reach the maximum taxable income limit: This is the maximum income subject to social security taxes. This limit fluctuates every year to take into account inflation, but in 2022, it is $ 147,000 per year. In order to earn the maximum amount of benefit, you will need to have reached these limits consistently throughout your career.

If you can’t meet all three of these requirements, you’re not alone. Most Americans will not be able to get the maximum benefit, and that’s okay. Fortunately, there are still plenty of ways to increase your benefits.

How to increase your social security

To earn the largest possible checks, you’ll need to work for at least 35 years, defer benefits until age 70, and make sure you earn at least $ 147,000 a year. But if you can’t reach all three of these benchmarks, getting as close as possible will result in a higher monthly payment.

For example, you may not earn enough to reach the maximum taxable earnings limit, but you can defer benefits until the age of 70. That alone can increase your payments by hundreds of dollars a month.

Or you may not want to postpone social security until the age of 70, but you can wait until, say, the age of 65 to start claiming. And this will result in higher payments compared to if you were deposited at age 62.

Some people may not be able to delay benefits at all, and that’s okay. If you can increase your income slightly (even if you don’t approach the $ 147,000 per year limit) or work for a few more years (even if you haven’t worked for 35 years), those measures can increase your benefits.

Small steps can make a big difference

The most important conclusion here is that even small steps to increase your benefits can give very good results along the way. So, even if you are not about to earn the maximum amount of benefit, this does not mean that you cannot increase your payments as much as possible.

The $ 18,984 Social Security bonus completely ignores most retirees

If you’re like most Americans, you’re a few years old (or older) when it comes to retirement savings. But a handful of little-known “social security secrets” could help secure an increase in retirement income. For example, an easy trick can pay you $ 18,984 extra … every year! Once you’ve learned how to maximize your social security benefits, we believe you can retire with confidence, with the peace of mind we all seek. Just click here to learn how to learn more about these strategies.

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