In 2023, the maximum monthly Social Security retirement income is $4,555, but it will likely be difficult to obtain.
In January, the average benefit for retired workers was only $1,779.16. There are two factors that keep the average payout so far below the maximum: the average person’s career earnings and the average age of retirement benefit claimants.
How To Receive Maximum Social Security Benefits?
If you want to get the maximum, inflation-adjusted $4,555 monthly benefit from Social Security during your retirement, you must complete the following three things.
Work Minimum Of 35 Years
While determining your monthly payment, the Social Security Administration takes into account your 35 highest-paid years of work.
To qualify for $4,555 per month, you must have worked for 35 years so that your benefits calculation for missing years does not contain any $0s.
Obtain Wage Equal Or Greater Than Wage Limit
Did you realize that there is a wage cap for Social Security tax purposes? Taxes are only levied on a portion of a worker’s wages, and the threshold varies from year to year.
In 2023, the pay ceiling is set at $160,200, at which point all income is tax-free. To qualify for the full monthly payment, however, you must have earned at or above the wage ceiling for 35 years.
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Delay Filing For Social Security Until Age 70
Once you reach full retirement age, which is 66, 67, or anywhere in between, depending on when you were born, you are entitled to your full monthly benefit based on your earnings history.
Each year you postpone filing past your full retirement age, 8% more is added to your benefits. To receive the maximum monthly income, you must wait until age 70 to file.
As a retiree, receiving $4,555 a month from Social Security may seem appealing. Yet, it is unrealistic for the majority of seniors, as many struggle to generate sufficient income to qualify for the maximum payment.
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