Social Security retirement benefits are not the same for all retirees. The amount of your monthly benefit can vary greatly based on a number of different factors, from when you decide to claim Social Security to how much you earned during your career. However, there is a maximum allowable Social Security retirement benefit. Ironically, the highest payout is reserved for those who arguably need it the least. If you’re aiming to snag this top payout, here’s what you’ll need to do.
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What Is the Highest Social Security Payout?
For 2021, the top Social Security payout is $3,895 per month. As you’ll see below, attaining this maximum benefit is not easy, and is based on a combination of your lifelong earnings record and your age when you claim your retirement benefit. The good news is that you have at least some control over these factors, meaning you have the ability to boost your future Social Security benefit.
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What Is the Average Social Security Payout?
Although the top Social Security payout is actually rather sizable, the average benefit is much less. As of 2021, the average retirement payout amounted to just $1,517.67. That’s just $18,212.04 per year. Seeing as a full-time minimum wage worker pulls in about $30,000 per year, the average Social Security benefit won’t get most retirees very far. As that $1,517.67 figure is just an average, it also means that many retirees earn payouts below that level.
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Does Your Age Affect Your Social Security Payout?
Age is absolutely a key factor in the size of your Social Security payout. The top payout of $3,895 is only available to those who delay claiming their benefit as late as possible, which is age 70. If you want to claim Social Security at 62 instead, which is the earliest allowable age, the maximum Social Security benefit drops to $2,324. If you retire any time between age 62 and age 70, your benefit amount will be adjusted accordingly between these two extremes.
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How Much Do You Have To Earn To Claim the Maximum Social Security Benefit?
Social Security taxes phase out once you reach the maximum wage base for a given year. If you earn above that maximum, you won’t have to pay any more Social Security tax for that year. However, you also won’t earn any additional credits for your Social Security retirement benefit. To qualify for the maximum Social Security payout, you’ve got to be a top earner. In fact, you’ll have to earn at least the maximum wage base for at least 35 years. For 2021, the Social Security wage base is $142,800. This number is indexed for inflation, so back in 1985, the wage base was just $39,600.