If you are still working in the United States and are approaching retirement in 2024, learn how to maximize the amount of your Social Security benefits
Often, thousands of Americans apply for Social Security retirement benefits without taking full advantage of all available options, causing them to forgo a significant amount of money. This lack of knowledge can lead to many not getting the full amount they could have gotten, affecting their long-term financial well-being.
To ensure you get the most Social Security you can, consider following some essential tips designed to maximize your benefits. While you may not reach the highest payment, which amounts to $4,873, applying these tips can still result in a significantly higher amount and, therefore, better management of your financial resources during retirement.
Approach to getting $4,873 from Social Security
In order to obtain $4,873 from Social Security, it is essential that workers have accumulated the contribution base and maximum taxable benefits over a period of 35 years. This requirement implies that the worker must have reached the taxable maximum in each of those years to qualify for the maximum benefit amount. Below is the list of the latest taxable maximums, reflecting how they have changed over the years:
In 2015 and 2016, the taxable maximum was $118,500. In 2017, it increased to $127,200, and in 2018 it was $128,400. 2019 saw an increase to $132,900, followed by an increase to $137,700 in 2020. In 2021, the taxable maximum increased to $142,800, and by 2022, it was set at $147,000. In 2023, it reached $160,200, and by 2024, it is expected to be $168,600.
Despite these increases, few workers manage to maintain such a high salary for 35 consecutive years. Not only is it necessary to reach these income levels each year, but also to be employed in a job that is covered by the Social Security Administration (SSA). Without this type of employment, the worker would not qualify to get the maximum benefit amount.
Therefore, reaching the $4,873 Social Security benefit amount is a goal that requires a combination of sustained high earnings over three decades and adequate coverage under the SSA. This represents a significant challenge for most workers, who must meet these strict criteria to obtain the maximum benefit.
Age to achieve $4,873 from Social Security
The requirements for getting the maximum amount of Social Security benefits do not end with just having earned the maximum taxable amount for 35 years and having worked in jobs covered by Social Security. It is also crucial to apply at age 70. If you apply before age 70, you won’t be able to take advantage of Social Security’s deferred credits, which can increase retirement benefits by about 8% for each year after full retirement age.
For example, if you meet all the requirements but file at full retirement age, which is 66 years and a few months for most people, you can get up to $3,822. This is considerably less, $1,051 less than the maximum possible amount. In addition, those who file at age 62, the earliest age to file, will get even less. At age 62, the maximum amount that can be gotten is $2,710.
To maximize your Social Security payment, it is essential to follow certain rules. First, you should file as late as possible, at age 70, to take full advantage of deferred credits. Second, it is important to obtain well-paying jobs that are covered by the Social Security Administration (SSA) during your working career. Finally, be sure to work at least 35 years to meet all the requirements necessary to get the maximum benefit amount.
In summary, to reach the maximum Social Security benefit amount of $4,873, you must combine high earnings over an extended work period with timely filing. By following these recommendations, you can ensure the highest possible retirement benefit.
