Social Security benefits are crucial for retirees, offering a steady income during their golden years. Many aim to receive the maximum benefit possible, which in 2024 amounts to $4,873 per month. Achieving this goal requires two essential steps.
Earn above the wage base limit for 35 years
Social Security calculates your monthly benefit based on your earnings during the 35 highest-earning years of your career. To qualify for the maximum benefit, you must earn at least the wage base limit for all 35 years. This limit, which was $168,600 in 2024, is adjusted annually for inflation, so staying informed about the current year's amount is crucial.
Don't claim benefits until age 70
Delaying your benefits until age 70 can significantly increase your monthly payout. Each month you delay benefits past your full retirement age, your benefit amount rises by 2/3 of 1%, resulting in an annual increase of 8%. Delaying benefits until age 70 could boost your benefit by 24% compared to claiming at your full retirement age.
Monitoring your earnings record can help you track your progress towards the maximum benefit. Social Security provides easy access to your earnings history on their website, allowing you to see if you've met the necessary requirements for a higher benefit.
While aiming for the maximum benefit is appealing, only a small percentage of individuals achieve it due to the rigorous earnings requirement. Ideally, Social Security should complement other retirement income sources rather than serve as the sole support. Taking proactive steps towards retirement savings can help ensure a financially stable and comfortable retirement.
Discovering lesser-known Social Security strategies could potentially boost your retirement income by thousands of dollars annually. By maximizing your Social Security benefits, you can retire with confidence and peace of mind. Take the first step towards securing your financial future by exploring these strategies today.