Three Simple Steps to Secure the Maximum Monthly Social Security Benefit of $4,873

Three Simple Steps to Secure the Maximum Monthly Social Security Benefit of ,873

As a member of the U.S. workforce, you are required to pay into Social Security as you earn. And as such, you might be keen to collect as much money as possible in benefits during retirement.

It may also interest you to know that the maximum monthly benefit Social Security will pay $4,873 this year. That’s over $58,000 per year, which is a good income in itself. And if this is the one that interests you, here are the three steps to follow.

Three Simple Steps to Secure the Maximum Monthly Social Security Benefit of ,873

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1. Work for at least 35 years

Every dollar you earn may not count toward your future Social Security benefits. But be aware that the program takes into account your 35 most profitable years on the job market to determine the monthly benefit to be paid to you. So, if you want to benefit from the maximum monthly benefit granted by Social Security, you will need to have at least 35 years of work under your belt.

2. Earn high salaries

It is not enough to work 35 years in your life. If you want to receive the maximum Social Security benefit, you will need to earn a very high salary for 35 years, especially one high enough to meet or exceed each year’s annual cap for Social Security tax purposes .

Remember, workers don’t pay Social Security taxes on their entire income. This year, only wages up to $168,600 are taxed. Next year, this ceiling is expected to increase. But regardless, you need your income to meet or exceed the salary cap for 35 years to have a chance of receiving the maximum Social Security benefit.

3. Delay your filing until age 70

At full retirement age (FRA), you are entitled to the full monthly benefit that Social Security should pay you based on your individual earnings history. But if you want to receive the program’s maximum monthly benefit, you’ll need to be prepared to delay your application until 70 years.

In some cases, this may mean having to work until age 70. And if you hate your job or it’s bad for your health, then frankly, chasing that maximum monthly benefit may not be worth it. But if you love your job and have the ability to keep it, claiming Social Security at age 70 instead of FRA could result in a much higher monthly income for life.

Don’t worry if you don’t get the maximum monthly Social Security benefit.

Receiving $4,873 a month from Social Security is a very good thing – there’s no doubt about it. But remember that most beneficiaries don’t receive that much money from Social Security on a monthly basis. And if obtaining this maximum benefit is simply not an option for you, whether because your career income is not high enough or you do not have enough years of work under your belt, Don’t worry. There are other things you can do to ensure a good retirement income.

First, do your best to fund an IRA or 401(k) plan consistently while you’re still earning a salary. And if you have access to a 401(k), try to get your employer full each year.

Next, consider investing in assets that can continue to pay you as a retiree. Dividend-paying stocks and municipal bonds fit neatly into this category.

Finally, consider some form of part-time work in retirement to generate income and stay busy. In today’s gig economy, you don’t even have to settle for a set work schedule. You can set your own schedule and work at your own pace at something you love.

If you have a high enough income with a long career and it is possible and desirable to qualify for Social Security at age 70, then you could end up with the program’s maximum monthly benefit. Otherwise, know that all is certainly not lost.

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3 steps to claim the maximum monthly Social Security benefit of $4,873 was originally published by The Motley Fool

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