Social Security Benefits: Here's How to Get $3,790 Monthly
Social Security benefits are a lifetime in retirement for millions of older Americans. About half of married couples depend on benefits for at least 50% of retirement income. Social Security benefits make up of at least 90% of their nearly one-quarter of couples.
Meanwhile, the average beneficiaries receive just $1,514 monthly (around $18,000 per year), making it hard to survive primarily on Social Security only. But some retirees collect significantly more. According to the Motley Fool, an individual can receive a maximum of $3,790 per month from Social Security. This means you may receive more than $45,000 per year. Here are the three steps you will need to do to earn that much:
Work minimum of 35 years
The Social Security Administration takes an average of an individual's income over the 35 highest-earning years of your career and will adjust those earnings for inflation. This way, the agency will calculate your benefit amount, which you will receive when you start claiming benefits at your full retirement age.
You would have zero added to your earnings average if you did not work a full 35 years by the time you start claiming your Social Security benefits. If you cannot reach it, that will reduce the benefit amount you will get, making you ineligible to receive the maximum $3,790 per month.
Max out income
The higher your income, the more extensive your monthly checks will be because the SSA uses your income to determine your benefit amount, but up to a specific limit.
The maximum taxable income from SSA is the highest amount you will owe Social Security payroll taxes on. Each year, it changes to account for inflation. The maximum taxable earnings are $137,000 yearly as of 2020. It means that any income earned over the limit is not valid to Social Security payroll taxes and won't impact your benefit amount.
To receive the maximum of $3,790 monthly, you need to reach the maximum taxable income limit consistently for several decades. Boosting your income will help collect more from Social Security, while it may not be feasible for most workers.
Wait until you become 70 years old
You still need to hold off on claiming benefits if you want to get more even if you have been earning a substantial income and have worked for more than 35 years. If you claim before age 70, you will receive a smaller benefit monthly. Even if you earned the maximum taxable income since 22 years old, and started claiming earlier like 62 years old, you will only receive $2,265 per month. Social Security benefit is more than $1,500 short of the maximum amount you could receive.
What if this goal is out of reach?
The maximum Social Security benefit you could receive involves earning a six-figure income for several decades. It is a challenging goal to reach. However, every bit counts, and it might be more comfortable than boosting your benefit.
Even if you cannot work a full 35 years, wait until age 70 to file for benefits, or reach the maximum earnings limit each year, taking it step-by-step to work, hold off on claiming your Social Security benefit by a year or two, or boosting your income as much as you can can help you boost the amount you could receive to your monthly checks.
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