This choice makes it impossible to get the maximum Social Security benefit of $4,194 | Smart Change: Personal Finance

(Christy Bieber)

Did you know that by 2022 you could potentially get a Social Security retirement check totaling $4,194 a month? However, not many retirees receive that much, as the average benefit is only $1,657.

Many decisions you make during your lifetime will play a role in determining your eligibility for the maximum benefit. But there is one important choice you can make as a retiree that makes it impossible to maximize your monthly income. This is what it is.

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Doing so will put the maximum Social Security benefit out of reach

If you’re of the age of eligibility for Social Security benefits, you’ll only be on track for the maximum monthly amount if you’ve made quite a bit of money during your career. You must have worked for at least 35 years and earned the maximum taxable wage in each of them to potentially receive $4,194 per month.

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The maximum taxable wage refers to the maximum income subject to social security tax. It is there to prevent very wealthy people from getting huge monthly benefits. It is $147,000 in 2022 and is the inflation-adjusted equivalent of that amount each year.

By the time you approach retirement age, it’s too late to go back and change your earned income. Either you have enough income to maximize your retirement benefits or you don’t. But if you to do Having a 35-year history of earning a generous wage still has one hurdle to overcome.

You must make the right choice about when to receive your monthly benefit. If you can’t, you’re putting the $4,194 per month benefit out of reach.

When should you appeal to social security to receive the maximum benefit?

If you want the largest Social Security benefit possible, you will have to wait until age 70 to claim it. There is a smaller maximum monthly income for anyone who claims even a month before their 70th birthday — even if they earned the taxable maximum wage or more over the course of a career of at least 35 years.

If you don’t claim your Social Security checks at 70, you’ll end up with less money because you won’t earn the maximum amount of deferred retirement credit. These are available for each month that you wait to start your payments after your full retirement age (which is between 66 and four months and age 67). Deferred pension loans increase your monthly income by 2/3 of 1% per month. Missing even one month of it would make it impossible to get the highest Social Security benefit available.

These deferred retirement credits don’t just open the door to receiving a $4,194 Social Security benefit if you’ve maxed out your taxable pay during your career. Each retiree can earn them and increase their own monthly payment. If you were on track for a $1,600 check at age 67 and waited until age 70 to claim benefits, you would earn three years of deferred retirement credit. You would increase your own payment by 24% and get $1,984 per month instead.

Whether you’re trying to earn the $4,194 maximum or simply trying to maximize the retirement benefits you qualify for based on your own work history, you should seriously consider waiting until age 70 to claim Social Security. if you are getting the biggest monthly payment possible is your goal.

The $18,984 Social Security Bonus Most Retirees Completely Overlook

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