Here’s exactly how to optimize the maximum monthly social security benefit


In 2021, the maximum Social Security benefit you could receive is $ 3,895. This maximum benefit increases each year. In 2022, it will be $ 4,194.

If you hope to receive the maximum benefit for the current year when you retire, you will need to take steps throughout your life to get there. Here is what they are.

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1. Earn high income

The maximum Social security benefit is only available to people earning the maximum taxable income. This is because the benefits are based on the average salary earned throughout a career. To maximize your benefits, you need the highest possible average salary.

In 2022, you will need to aim for an annual income of $ 147,000 or more to be on track for the maximum benefits when you exit the workforce. Next year. $ 147,000 is the maximum taxable income. Anything you earn above will not count towards your benefits. This is because Social Security sets a base salary limit, and no income above it is taxed or counted in the benefit formula. This salary cap ensures that millionaires and billionaires do not receive huge Social Security checks.

Achieving this level of income is difficult because only a small percentage of people earn that much over the course of a year. Some options to help you increase your income to the required level could include:

  • Work overtime or have a side job.
  • Improve your qualifications to increase your salary.
  • Start your own business – if you have an idea that you think could turn out to be a big hit.

The basic salary limit will increase each year. So even if you hit the maximum taxable income in 2022, you won’t be on track for the maximum allowance unless you do so every year that counts towards your Social Security benefit formula.

2. Work for at least 35 years

So, how many years count in your benefit formula? The answer is 35. Average salary benefits are calculated based on the 35 years you earn the most, on an inflation-adjusted basis.

If you earn at least the basic salary limit for a full 35 years, you could potentially maximize your benefits by working exactly that long. But, if you fail even for one year, you won’t get the highest Social Security checks available.

Now you could work for Following over 35 if you wanted. This would push back some low income years. If you worked for 37 years and earned the maximum taxable in 35 of them, you would be on your way to the maximum allowance.

Of course, if you work less over 35 years old, you will lose your chance at the Social Security check max. A year of $ 0 of average salary will count toward your benefit formula for each year you fail to meet the 35-year goal. So, if you’ve earned the basic salary limit for 34 years and retired, including one year’s salary of $ 0 would prevent you from maximizing your monthly Social Security check.

3. Apply for social security at 70

If you earn at least the basic salary limit for a full 35 years, you always have not yet earned the maximum social security benefit. There is one more step you must take. You will also have to wait until age 70 to apply for benefits.

This is because maximizing your salary for 35 years would earn you the most primary insurance amount (PIA). Your PIA is what you would receive if you claimed benefits from full retirement age (between 66 and four months and 67 for anyone aged 66 in 2022 and beyond). If you apply for benefits from the FRA, you lose deferred retirement credits. These can be earned up to the age of 70 and you’ll need to maximize them to get the biggest Social Security checks available.

Delaying benefits until age 70 and earning the maximum taxable for 35 years can be difficult. But, even if you may not get the highest benefits available, you can still increase your own Social Security checks by increasing your income as much as you can, delaying your claim for benefits for as long as you can, and continuing to work for no less. over 35 years old.

It is worth trying to take these steps if you are relying on Social Security Administration income to support you in your later years.

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