Millions of Americans, about 71, are on Social Security benefits. Retirement checks are becoming an essential part of the economy of millions of families in the United States. If you long for a large Social Security payment, this is what you should do to be successful and obtain it
As a matter of fact, the average check is about $1,841 as of September 2023 said SSA. Therefore, it seems to be an extremely difficult challenge to achieve the largest payment Social Security sends.
Undoubtedly, everyone would like to receive as much as $4,555 per month. But there are three key requirements to cash it. One of them is particularly tricky. So, the answer would be, that it is still possible to get $4,555 in 2023 if you have met all the requirements so far.
BUT WHAT ARE THE REQUIREMENTS TO CASH A $4,555 CHECK FROM SOCIAL SECURITY?
The Social Security Administration does not give retirement benefits to all Americans. These payments are only for those who have worked and paid the necessary taxes.
In fact, a worker would need to work for about ten years to get retirement benefits. However, that would not be enough to cash $4,555 in 2023. In the first place, you must retire at the age of 70.
Therefore, there are millions of Americans who cannot be eligible. They have opted for early filing for Social Security. This would result in more free time to have fun and travel, but less money to face all the expenses in retirement.
Another essential condition the Administration has set is to work for a specific number of years. Those who do not meet that requirement will get a reduction in their monthly payment. This is particularly worrying for those who started working later than usual. For example, if you came to the USA when you were 58.
WHICH IS THE LAST AND MOST CHALLENGING REQUIREMENT TO GET $4,555 FROM SOCIAL SECURITY?
Unless you have a condition or illness, you may be able to work until you are 70 years old. Perhaps you may not be able to continue because your job is too demanding even if you are healthy and fit.
Working for at least 35 years is not uncommon either. What is really tricky is to become a high earner. Only those who have exorbitant wages can receive the largest Social Security payment.
Actually, there is a minimum amount of money you must earn to be eligible for the largest Social Security check worth $4,555. Besides, you must be a really high earner for many years, at least 35.
Keep in mind that Social Security uses the 35 years from your work history with the highest earnings. So, if you have an average wage, you can never be eligible for such a large payment.
To make it even more difficult, the amount of money you must have in earnings keeps increasing as inflation does. Of course, because of 2024 COLA This amount is known as the taxable maximum.
#BREAKING! More than 71 million Americans will get a 3.2% increase in monthly #SocialSecurity benefits and #SSI payments in 2024. Check our blog for more information: https://t.co/2RWlgZ3CVz #COLA #2024COLA pic.twitter.com/y7F19zqFWz
— Social Security (@SocialSecurity) October 12, 2023
But you may have also heard about the contribution and benefits base, which are basically the same figure. For the year 2023, the taxable maximum is $160,200 while it will be $168,600 in 2024.
Thus, it has increased by $8,400, which is quite a lot of money. Summing up, getting $4,555 from Social Security seems to be almost impossible for the vast majority of workers.
However, there is a good lesson from all this. The later you retire, the larger your check will be. Social Security gives a 24% reward if you file at 70. While those who decide to file at 62 will get a reduction of about 30% in 2023.
Plan your retirement as you as you start working. If you are 18 years old, it is the best time to make the most of your monthly check in retirement. Saving, investing, and not putting all your eggs in one basket is the key to success.