The average Social Security retirement benefit for United States citizens is $1,666 per month. There are many subsidy recipients who receive less than this money and many others who receive a higher amount. As is obvious, receiving the maximum pension of $4,194 is the goal of many Americans, but it may be impossible for a variety of reasons.
The salary needed over the years as a worker is quite large. Thus, Social Security increases very considerably. But, as we have previously discussed, it can be overly complicated. In addition to this, there are other factors to take into account. The years worked are important, as well as the retirement age. But, first let’s see what is the salary needed to reach this maximum Social Security. Is your salary close to this figure?
The salary to reach the Social Security maximum
The other two factors that determine Social Security will be discussed below. For now, we will focus on the salary number. To get the maximum possible benefit the first of the numbers to consider is to have a salary that reaches the maximum amount of taxable money. This limit changes a bit each year due to inflation, but in 2022 the figure reaches $147,000.
However, it should be taken into consideration that exceeding that limit does not bring any extra benefit. Social Security will not increase because you will not pay more taxes. For that reason, earning that amount per year will give you the best salary to get the maximum retirement pension. It is not an easy salary to achieve, but it is possible.
What factors affect the retirement pension?
In addition to the salary factor we have already discussed, there are two other factors that directly affect your Social Security pension:
- Retirement age. The limit is 70 years of age. Beyond this age there is no added benefit, although it is also critical to getting the $4,194 per month Social Security benefit.
- Years worked. The minimum number of years worked to get Social Security is 10. But with those years the benefit is very low. To get a higher pension, it is mandatory to work 35 years. Each year not worked means a reduction in the pension. When the Administration does the average, one year not worked means 0 dollars in the average.
Thus, the best way to get the maximum SSA benefit is to work for 35 years with a good salary and apply for retirement as late as possible. In this sense, at age 67 it is possible to apply for Full Retirement Age, although it is much better to hold out until age 70.