A major component of your retirement strategy should include maximizing your Social Security benefits. The assured lifetime income provided by Social Stability is an even more crucial component of sustaining your economic security as you age because Americans frequently enjoy longer retirements.
The maximum benefits from Social Security will rise once more in 2023 thanks to an almost record-high cost-of-living adjustment (COLA).
Social Security Retirement Benefits
Your job history and the age you decide to start receiving benefits will both affect your Social Security benefits. The maximum Social Security income is $3,345 per month if you begin collecting benefits in 2022 at full retirement age. Your pension benefits will be reduced if you have the good fortune to retire early. The earliest age at which you can file for Social Security retirement benefits is 62. The highest Social Security payout drops to $2,364 at age 62 (a decrease of nearly 30%).
You have until age 70 to postpone starting to get Social Security benefits. Your monthly income might be greatly increased by delaying receiving benefits. At age 70 in 2022, the max Social Security benefit is $4,194.
The bulk of pensioners receives substantially less in Social Security benefits than what you just saw in the aforementioned figures. The average Social Security check, as reported by the Social Security Administration, was $1,542.22 as of June 2022.
The annual cost of living rise for 2023, according to the Social Security Administration, will be 8.7%. In 2023 and beyond, the maximum Social Security payout will increase as a result of this increase.
Social Security Benefits Maximum 2023
The current maximum Social Security numbers will increase in 2023 due to the Social Security COLA of 8.7%. The highest monthly Social Security income for people collecting perks at age 62 should be close to $2,570. Your highest Social Security income in 2023 will be around $3,636 per month if you wait till you reach Full Retirement Age. The amount you receive increases by around 30% a month if you delay retiring until age 62.
Waiting till age 70 will yield the highest Social Security income possible for patient individuals, who want to receive the maximum benefits, or maybe are just working a little longer.
At age 70, the maximum monthly Social Security payout will be close to $4,559. Although receiving nearly $55,000 in Social Security benefits annually may sound amazing, assuming you are eligible for the maximum payment, this is probably just replacing a small fraction of your pre-retirement earnings reports Forbes.
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