Social Security Benefits are one of the lethal sources of income for many retired Americans. According to the Social Security Administration, an average American retiree receives almost $1500 every month which makes it approximately $18,000 per year.
Considering the amount of $18,000 It becomes difficult for a retiree to depend upon the Social Security benefits entirely but there are certain ways by which a person can gain maximum social security benefit.
One of them is to increase your retirement savings in the last years of your job, which will increase your monthly social security benefits income accordingly.
For instance, the maximum social security benefit that you can collect is $3895 every month, but here is the catch; to receive this particular amount, you have to earn certain numbers. Let’s have a look at how we can gain maximum social security benefits:
How to earn maximum social security benefit
If you want to earn maximum social security benefits, then you need to work at least 35 full years to claim the maximum benefits.
Social Security benefits largely depend upon the income you earn throughout your career spanning over 35 years. It is also important to know that during these 35 years you are entitled to reach the maximum taxable earnings limit. The maximum taxable earnings limit will reciprocate with the highest number of social security taxes resulting in the maximum social security benefit amount.
For 2021, the maximum taxable earnings limit set by the social security administration is $142,800 per fiscal year. To avail maximum social security benefits, a person needs to reach out to the limits set by the social security administration religiously over 35 years. It can be a long painstaking wait as you can only claim these benefits once you are 70 years old.
If you claim the social security benefits before the age of 70 then this might result in a loss of the social security benefits by almost 30%.
What if the income of 35 years is not enough to avail maximum social security benefit?
Many people do not know about the limit of taxation which can help them in their retired years. Without the knowledge, they may fall short in terms of income and the paid tax amount over 35 years. But not to worry there are methods to boost your monthly social security benefit amounts.
One of the easiest ways to overcome this shortfall of income is to work longer. When the social security administration is calculating the average of your earnings, it is done over the highest-paid years of your career. There are chances that towards the end of your career you earn more compared to when you started as you are in a better position with experience.
Therefore, if you continue to work longer than the set retirement date; you will have more high-yielding years from which your social security benefits will be calculated. This will go in your favor, earning you a large amount in terms of social security benefits.
Another way to have maximum social security benefits is to wait to claim. Officially, you can claim the benefits as soon as you turn 62 but if you wait longer, at least till the age of 70 you will earn more every month. If you claim at the age of 70, you are liable to receive a full benefit amount as well as 32 times extra every month.
Many elderly citizens of America depend upon their social security checks entirely. These checks remain constant throughout their retirement life. Therefore, it is important to make sure you get the maximum social security benefit to make your life easy.