In 2023, the maximum monthly Social Security benefits is $4,555, or $54,660 annually. Some retirees will start receiving Social Security Administration checks in 2023, providing them with a monthly retirement income of $4,555.
It should come as no surprise that only a small number of people will receive this sizeable monthly payment from Social Security, which is the largest retirement benefit Social Security has ever offered.
How To Receive Social Security’s Maximum Payment?
Due to the fact that Social Security benefits are based on income earned, even those with very high incomes can access the $4,555 monthly Social Security check.
To receive the $4,555 monthly maximum Social Security retirement benefit, you must fulfill three requirements:
- Work in a job that is eligible for Social Security for at least 35 years. The majority of employees surpass this goal.
- Earn enough money over the course of at least 35 years to be considered taxable for Social Security purposes. The top taxable amount in 2023 is $160,200. This is a significant limiting factor because the majority of Americans don’t achieve the maximum in any given year, much less in 35 of them.
- Until you are 70 years old, postpone collecting benefits. Only 5% of men and 7% of women delay receiving their benefits for this long.
When To File For Social Security Benefits?
At age 62, you are first qualified to receive Social Security benefits. But at age 62, the maximum benefit is only $2,572. That’s considerably less than the $4,555 maximum benefit at 70.
There is a system of early filing penalties and delayed retirement credits, which accounts for why it is so much lower. Early claimants experience a reduction in their standard benefit, whereas those who wait until age 70 accrue delayed retirement credits that increase it.
Therefore, even if you did earn at least the wage base limit for the entire 35 years of your career, you will not be eligible for the $4,555 maximum benefit unless you intend to delay receiving your first retirement check until the age of 70.
It’s crucial to go to mySocialSecurity to get a realistic estimate of the income you can expect because your benefit is probably going to be much lower. Then, base your retirement plans on that figure with the intention of building up a sizable savings account to supplement Social Security and provide you with the funds you’ll need in later life.
You can maximize your own Social Security benefit in a few different ways. Even if you are only able to earn an additional $100 per month, that would equate to $1,200 per year in inflation-protected income for the rest of your life, which could significantly improve your level of comfort.
Finding your position is the first step. Make an account at SSA.gov if you haven’t already and view your most recent Social Security statement. Working longer hours is the most reliable way to increase your benefit. It doesn’t necessarily have to take years.
Even a few months can have an impact. For instance, your benefit will permanently increase by 0.67% for each month you postpone Social Security past the full retirement age. For instance, retiring at 67 1/2 as opposed to 67 can increase your monthly retirement benefit by $80 on a $2,000 salary.
Read more: Social Security update: Recipients will get two direct payment checks on March. Here’s why!
