Social Security benefits may differ from one retiree to another. It also varies every year since they are usually updated. Due to inflation, CPI and COLA affect prices as well as benefits. If you have just started your career, let’s say you are still in your early 20s, there is a lot more you can do. However, if you are close to your retirement age it will depend on your lifetime earnings, as well as the number of years you have worked.
If you are 62 years old, you can still delay your retirement in order to make your Social Security benefit grow. Bear in mind that according to Social Security, the average pension for retirees was $1,676 last month. Depending on what you need to spend every month and where you live, it will be enough or not. This year the maximum Social Security benefits reach the amount of $4,194.
Due to the COLA changes, SSA has boosted SS benefits and SSI alike. Therefore, the new amount for those who meet the requirements will be $4,555 in 2023. To get the maximum benefit you have to put off retirement. The age of 70 is the maximum age allowed to do it and the youngest is 62. So, the more you delay it, the higher it will be. Besides, thirty-five years of work is the necessary amount to get the maximum too.
But that doesn’t mean it’s mandatory to max out the Social Security check. It is possible to have a good amount of money on a monthly basis if we have a good retirement plan. That’s something that’s fundamental to having the best golden years.
What is the amount of money that you must earn in order to get the maximum Social Security benefit?
Not only do you need to delay your retirement as much as possible or work for 35 years, but you should also earn as much as the benefit base every single year. Well, it is true that it could be more than that amount, but not lower. Remember that SSA works out your benefits using the income you have had during the 35 years -or more- that you have worked in your career.
Then, they need to make sure that your earnings were higher than what they established. This is probably the most challenging requirement. That is why not many people are eligible for the maximum benefit. The trickiest thing is that the amount you need to get every year for your earnings goes up. Thus, you may need to have a higher salary every single year.
Although it is possible to reach the maximum Social Security check, not everyone can achieve it. It is possible, but to do so, we have to optimize every detail of our retirement plan.
You might not be able to get the maximum Social Security benefit. But it is true that you can certainly increase your pension check by delaying your retirement. It is always good to check what the earnings benefit base is and aim for that amount every year. Do not forget that you need to work for 35 years at least. Let’s hope this number of working years is not different in the future.
As a conclusion, we can say that the maximum Social Security check of $4,194 in the year 2022 is possible, but difficult. Still, anyone who manages to meet all the requirements will be able to have this amount on a monthly basis.
However, it is important to remember not to rely on Social Security as the main source of income. The pension check should be about 40% of total income. We can get extra money by doing some temporary jobs, selling things we don’t use, or starting our own business.