Most people who live and work their lives in the United States end up being entitled to a Social Security benefit. The amount of that benefit changes based on various values. The maximum benefit is $4,194 per month in the year 2022, but that figure is nothing more than a dream for most U.S. citizens. The Social Security Administration has very few people collecting that much money, and the reality is that benefits are much lower.
To get a benefit of $4,194, the maximum you can currently collect, you need to do several very specific things. And it’s not just enough to work 35 years with a big salary. So it may not be worth it for a large portion of workers. Many of them prefer to stop working earlier and start enjoying and relaxing in retirement.
Reasons why you won’t be able to get the $4,194 Social Security benefit
If we think about that a benefit of $4,194 per month makes it $50,328 per year. That’s a figure that can make a lot of people dizzy. The difference between that amount of benefit and the average is abysmal. The norm is to receive a Social Security benefit of around $1,657 per month, which ends up being $19,884 per year. The difference, therefore, is more than $30,000 per year.
It is therefore normal that there are so many people who think about getting the maximum benefit, but it is not easy. To reach that figure, it is necessary to work at least 35 years, earn a very high salary and, in addition, work until the age of 70. Each year worked after the age of 67 increases your Social Security benefit a little. This means that you can finally get this high figure.
Is it worth it to get the $4,194 monthly benefit?
The ultimate goal of claiming the retirement benefit is to enjoy the rest. If you’re working until you’re 70 without stopping, Social Security may not make sense. You will get a higher benefit, yes, but you can also work part-time and collect Social Security at the same time. You don’t have to work until you are 62, although you can’t claim your benefit until then.
If you have a lower benefit but know some tips to stretch your monthly payment, you will enjoy your rest more. Another option to avoid losing purchasing power is to move to a state where you do not pay state taxes or where you can live on a low monthly Social Security income.