Do you want a maximum of $ 4194 in social security? Here’s the salary you need

Do you think that one day you will have the opportunity to get the maximum benefit from social security? Sorry to say that, but you probably don’t know.

The maximum monthly check you can get from Social Security is $ 4,194 in 2022. The benefit is adjusted for inflation, so in most years the maximum benefit increases. But very few people will constantly earn enough throughout their careers to get the maximum benefit.

Here’s how much you need to earn to get the biggest Social Security checks.

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How to get a $ 4194 Social Security check?

If you do not earn at least 147,000 dollars in 2022, you are not on the right path to receiving maximum social assistance. Do you make more than $ 147,000? Don’t celebrate yet.

Social security bases your benefit on your maximum 35 years of earnings. To get the highest possible checks, you must earn at least the maximum taxable social security income for at least 35 years. In 2022, that amount is $ 147,000. It grows almost every year.

Here are the maximum taxable social security earnings from 2015 to 2022.

Year Maximum taxable earnings
2015 $ 118,500
2016 $ 118,500
2017 $ 127,200
2018 $ 128,400
2019 $ 132,900
2020 $ 137,700
2021 $ 142,800
2022 $ 147,000

Data source: Social Insurance Administration.

Here’s how it works: you pay 6.2% on the taxable minimum. Your employer corresponds to that 6.2%. But everything you earn above that amount does not go to the social security fund. So even if you make $ 1 million in 2022, your income in the eyes of Social Security is $ 147,000.

Meanwhile, a shortfall in taxable wages in just one year of 35 years of earnings will result in a check less than the maximum. Even those who earn the most often do not have that salary level at the beginning of their career. That’s why it’s so hard to get a monthly check of $ 4,194 from Social Security.

Less than 20% of workers will have earnings higher than the taxable maximum in any year during their lifetime. Your chances of earning a taxable maximum in a given year? Only about 6%.

It’s not just about your salary

But earning at least a taxable maximum is not enough if you want to maximize your Social Security check. You will also have to wait until age 70 to collect. You must wait until full retirement age (FRA) to receive the full benefit. That’s 67 if you were born in 1960 or later, although you can use the benefits as early as 62, albeit with a reduced amount.

To increase your check, you must take advantage of the 8% retirement delay bonus you earn for each year you endure after your full retirement age until your benefit expires at age 70. get a maximum benefit of only 3345 USD.

Is it worth getting a maximum social security check?

If you’ve earned enough over 35 years to collect your maximum Social Security check, you’re probably not doing so with the goal of maximizing Social Security benefits. In this scenario, you probably have enough savings and will not depend on social security for a significant portion of your retirement income.

But if your retirement savings fall, a good goal is to maximize your social security as much as possible. The longer you wait, the greater your benefit. You can also get more money if you are able to replace the salary from the year with a lower salary with the salary from the year with a higher payout.

Postponing retirement, even for a year or two, can make a significant difference in your retirement budget. Not only can you make more money from social security by waiting, but you can also allow your investment to increase a little longer by delaying withdrawals.

Social security is an important source of income for the elderly, but ideally, it is just one of several sources of income. Regardless of your retirement plans, very few people should expect to receive maximum compensation.

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