The top-earning seniors got $4,194 each month in Social Security Benefits this year and will get the same in 2023. The cost-of-living adjustment will be the third-highest in 2023 after 1980, which should be around 8.7%.
A few things are necessary to earn Social Security’s maximum benefit in 2023. The first is that the individual must work for at least 35 years before claiming. The reason is that the Social Security Administration bases the benefits on average monthly earnings from the 35 highest-earning years, adjusted for inflation.
When someone working for the duration mentioned above applies, they will have zero income years factored into the calculation. One of them will also put the maximum monthly benefit beyond reach.
Individuals also must pay Social Security payroll taxes on the maximum taxable income in their 35 highest earning years.
Millions of #SocialSecurity beneficiaries are managing their benefits online, so they can do what they want offline. What are you waiting for? See everything you can do with your personal #mySocialSecurity account: https://t.co/IvpgvOzM7o
— Social Security (@SocialSecurity) November 14, 2022
The government does not collect Social Security taxes on all income, which is expected to increase to $160,200 in 2023. So most people won’t be able to claim the top benefit. A few can pull that much money in their entire career.
The final rule is that the individual must be 70 years old to claim the maximum benefit. Although it is possible to claim checks as early as 62, most people don’t realize that doing so reduces their use. The bills increase a little each month when someone delays benefits until they reach the maximum benefit at 70.
If someone cannot claim the maximum Social Security benefit, they must continue working. Employing for 35 years will help them avoid zero-income years in their benefit calculation, and working longer will boost benefits. Taking steps to increase income will increase Social Security checks.
The benefits can also be claimed at the full retirement age, somewhere between the age group of 66 to 67.
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