Do you know that you could be entitled to more money from Social Security than you currently receive? Millions of Americans rely on Social Security benefits as their primary source of income in retirement, yet the average retiree only collects around $1,800 per month in benefits. This amount may not be enough to live on comfortably, but did you know that the maximum benefit in 2023 is a whopping $4,555 per month? Yes, a real boost for your household specially when the inflation is hitting hard the American families.
While it may seem impossible to achieve the maximum payment, it is actually possible. The Social Security Administration (SSA) issues tens of millions of payments to beneficiaries, and the exact amount each person receives depends on several factors, such as the number of years worked, age at retirement, and income throughout their working life. Discover if you’re eligible for this extra Social Security boost that might help your household economy.
How the SSA Calculate Your Social Security Benefits and How to Get the Extra $4,555 Earnings
This year, the SSA applied an 8.7 percent Cost-of-living adjustment (COLA) increase to American beneficiaries, which means that some retirees will receive more than $4,000 per month. To be eligible for this maximum payment, there are three key factors that the entity consider when taking a look at your archive. Firstly, the SSA will examine at least 35 years of your work history to calculate your retirement money. Afterward, you must earn or exceed the salary cap in each of those 35 years.
Finally, and the most important part, you must pay Social Security payroll taxes on the maximum taxable income in those 35 years of highest earnings. The maximum taxable income changes every year and currently stands at $160,200 for 2023.
How to Claim the $4,555 Max Monthly Social Security Benefit
The SSA has a specific formula for determining the amount of money each recipient will receive based on their age at retirement. If you retired, for example, at the age of 67, the maximum check you could receive is $3,627. On the other hand, those who retired at 62 may receive up to $2,572, while those who delayed their retirement until the age of 70 could be eligible for the highest payment of $4,555 per month.
With careful planning and consideration, you could be eligible for the maximum payment of $4,555 per month. Take control of your retirement and ensure that you receive the benefits that you’re entitled to.
Social Security benefits are designed to replace about 40% of your pre-retirement income, which may not be enough to support your standard of living during retirement. Your age at the time you claim benefits can affect the size of your payments. Claiming benefits before full retirement age results in a reduced monthly payment, which can cut as much as 30% off your standard benefit if you claim your first check at 62 when your full retirement age is 67.