The maximum Social Security benefit in 2022 is $ 4,194 a month if you retire at the age of 70. The maximum Social Security benefit per month is $ 3,345 when you retire to full age; $ 2,364 with retirement at age 62.
The amount you get from Social Security each month depends on the size of your living wage and your retirement age. The more you earn and the longer you wait for Social Security, the greater the monthly check.
The Social Security Administration looks at how much money you have earned over time and corrects that benefit with inflation. Up to 35 of your highest paid age, standing at 60 years, is considered the average monthly income – this is called your average indexed monthly earnings (AIME).
After that, a formula is used that gives you a percentage of that lifetime benefit as your profit margin. The payment you receive when you wait until you reach normal retirement age is called your primary insurance value.
In fact, your earnings, say, 1993 are reviewed to show what that salary might be today before Social Security determines your benefit. (You are also entitled to an increase in living expenses from the age of 62, even if you do not take your benefits until later.)
How to increase your retirement income
Social Security alone will probably not be enough money for most people when they retire, which is one reason why retirement is very important. You can increase your retirement income by investing in tax-deductible savings as an individual retirement account.
How the IRA works
Individual Retirement Account (IRA) is a type of retirement or tax-free retirement account that you can receive at most financial institutions. You can use it to invest in stocks, bonds and other commodities.
Two popular account types – Traditional and Roth – allow you to add $ 6,000 a year ($ 7,000 if you are 50 or older), even if you contribute to a workplace savings plan like 401 (k).
Most people who claim Social Security retirement benefits by 2022 can receive them each month:
- 2,364 $ per person file in 62.
- $ 3,345 for a person completing full retirement age (66 months and 2 months for 1955 births, 66 months and 4 months for 1956 births).
- $ 4,194 per file person aged 70.
- (In essence, the average retirement benefit for Social Security in 2022 is $ 1,657 per month. The average disability benefit is $ 1,358.)
Who deserves the most? People whose income is equal to or greater than the maximum amount of Social Security tax revenue – the amount you earn from Social Security taxes – for at least 35 years of their working life. The highest taxable income for 2022 is $ 147,000. The figure is adjusted annually based on changes in national income levels, as well as the amount of capital gains each year.
Keep in mind
Big profits should not be confused with big family profits. This is the maximum amount a family can get together from Social Security (including retirement, spouse, children, disability or survivor benefits) in a single family member benefit record.
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