In October, seniors receiving Social Security received good news. In 2023, their benefits would receive a cost-of-living adjustment (COLA) of 8.7% due to soaring inflation levels. This is the largest increase seen in decades.
Due to this COLA, the maximum monthly Social Security benefit available to seniors in 2023 is $4,555. Obviously, this is not a small sum of money.
How To Receive Maximum Social Security Benefits?
To receive the maximum Social Security benefit, you must do the following:
- Minimum 35 years of employment
- Earn an annual income that is equal to or greater than the wage cap for at least 35 years.
- Delay plan to file for Social Security until age 70
Your benefits are determined by your 35 highest-paid years in the workforce. And each year, a wage cap is imposed that determines how much income is subject to taxation.
This year’s salary cap is set at $147,000. Next year, it will reach $160,200. To receive the maximum monthly benefit from Social Security, you must earn sufficient income for 35 years to meet or exceed the wage cap.
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When to Apply?
Lastly, if you wish to receive the maximum benefit, you must delay your claim until age 70. This will increase your benefit, possibly bringing it to $4,555.
However, workers can apply for benefit between the ages of 62 and 70. Filing for Social Security at 62 instead of 70 results in a lower benefit, but 96 more checks. For many employees, this makes filing early the best decision.
To receive the largest possible payment, however, you must wait until age 70. Each year you wait to file from age 67 to 70, your monthly payment increases by 8%. This means that those who delay benefits until age 70 earn 24% more than they would have at age 67.
In addition to working at least 35 years and earning at least the wage base in each of those years, waiting to file until age 70 is the final requirement for claiming the maximum benefit.
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