Many people are noticing larger Social Security checks due to an increase in COLA for 2022, and the reason for this was the incredibly high rate of inflation.
The rate of inflation in Feb. reached 7.9% compared to one year prior.
65 million people get Social Security benefits each year.
The money sent via Social Security is not meant to replace your income from before retirement, but to supplement a portion of it.
This means it’s important to have a savings account to supplement the rest of what you’re missing from a salary.
Some people are lucky enough to be receiving the maximum benefit, but very few reach that point.
Maximum Social Security benefits and how to reach them
What you get depends on what you made throughout your working life as well as how old you are when you retire.
At age 62, if you get the maximum it would be $2,364 per month in 2022.
At your full retirement age in 2022 it would be $3,345.
If you wait until you’re 70 you can see as much as $4,194 in 2022.
There are a few things to do that will allow you to obtain these maximum benefits.
This includes working for a full 35 years.
You want income for each year because any $0 years will pull your average benefit down.
To get the highest amount possible, you’ll need to earn the maximum taxable amount each year.
In 2022 that amount is $147,000.
Every year that number changes.
The next thing you’ll need to do is delay collecting your benefits until you turn 70.
For each year past your full retirement age, your benefits will go up by about 8%.