Here’s the maximum Social Security benefit you can collect if you’re retiring at 70 this year
There is no official retirement age in the United States, nor is there a single age to qualify for Social Security. For this reason, you may decide to strive to work until age 70 and sign up for Social Security at that time.
This could result in a very generous monthly benefit. And that’s true whether or not you qualify for the maximum monthly Social Security benefit.
You could enjoy a very good salary
You are entitled to your full monthly Social Security benefit, based on your personal earnings history, when Full Retirement Age (FRA) arrives. This age is 66, 67, or somewhere in between, depending on your year of birth.
But for every year you delay filing Social Security beyond FRA, your monthly benefit will increase by 8%. And in case it’s not clear, this boost is permanent that you can take advantage of.
Meanwhile, if you file for Social Security this year at age 70, the maximum monthly benefit you can collect is $4,873. However, to receive $4,873 per month from Social Security, you must have worked for 35 years. And earned a very high salary at that time. And “very high” means a salary that meets or exceeds the Social Security salary ceiling for 35 years.
Social security is largely financed by payroll taxes. But workers do not pay taxes on their entire income. Instead, a salary cap is established each year, which corresponds to the amount of earnings on which workers will pay these taxes.
This year, that limit rises to $168,600. Last year it was $160,200. Since the salary cap has increased with inflation over the years, you may have earned significantly less than $160,200 or $168,600 in some years and still be in line to receive the maximum monthly benefit social security this year.
The fact is, however, that to qualify for this benefit, your income must be very high throughout your career. If that weren’t the case, you might not have a monthly salary of $4,873 even if you delayed filing Social Security until age 70.
That said, you could still get a pretty good monthly benefit. Even a monthly salary of $3,873, or $3,000, for that matter, could do a lot of good for your retirement finances.
Delaying your deposit could pay off
If you’re approaching the FRA and considering claiming Social Security, it might pay to work a little longer and delay filing until your 70th birthday. This could be an especially smart move if you’re not very sure how much money you have saved for retirement and know that you’ll need Social Security to cover most of your living expenses.
In addition to delaying your Social Security filing until age 70, you can increase your monthly benefits by trying to increase your salary at the end of your career, whether by fighting for a promotion and raise at work or by increasing your total income with a side hustle.
Regardless, there is much to be gained by claiming Social Security at age 70. And that remains true even if you’re not in line for the program’s maximum monthly payment.
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News Source : www.usatoday.com
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