Millions of Americans have retired across the country and collect Social Security benefits, but only a small portion get the maximum amount.
This money works as a replacement for a portion of a retirees income from before they retired.
The benefit is designed to only cover around 40% of a person’s prior income.
Social Security: February 2022 COLA check dates
Maximum Social Security benefits in 2022
Every year with the COLA increase the maximum amount a retiree can possibly collect rises.
If the retiree waited until they were 70 to retire, the most they could possible get it $4,194.
These people need to have worked for at least ten years, earning 40 credits, and must have made high wages in the six figure range for 35 years.
Medicare & Social Security: How to sign up for insurance
How to figure out Social Security benefit amounts
Qualifying individuals figure out what they will get paid using their age upon retirement, number of years they worked, and how much they earned working those years.
The tax cap for 2022 is $147,000. This means earners will pay Social Security taxes on the first $147,000, but after that are no longer taxed.
Wages do take inflation into account so they match with the value of a dollar today.
You may claim Social Security as early as age 62, but risk seeing a permanent 30% decrease in monthly payments.
If you wait until age 70, you could see your monthly payments grow by 8% each year. This is for each year past your full retirement age.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].