East Africa News Post

Complete News World

SSA: What You Need to Know to Get the Maximum Social Security Retirement Benefit |  composition

SSA: What You Need to Know to Get the Maximum Social Security Retirement Benefit | composition

Retirement isn’t easy because you get your monthly paycheck based on what you contributed and the amount of time you spent doing it. As stated therein Social Security AdministrationYou should know that in 2023, the average monthly pension will be $1,827, but the maximum payment will be $4,555. How to achieve that pension?

The SSA states that a retirement benefit is a monthly check that replaces a portion of your income when you reduce your hours or stop working altogether. However, this won’t replace all of your income, so it’s best to find other ways to pay your monthly expenses as you age.

Data from the SSA shows that as of June 2022, about 182 million people worked and paid Social Security taxes, while the number of beneficiaries reached 66 million, of which 51 million were retirees and their family members.

How to achieve a pension of US$4,500 per month?

The retirement pension is not the same for every person, but if you want to qualify for the maximum Social Security benefit, which is $4,555 dollars; You must work for at least 35 years and receive the salary cap for each of those 35 years; In addition to choosing the right age to retire; In this case, 70 years. Next, The Motley Fool’s experts explain it to you step by step, based on information gathered by the media :

1. Be active in one job for more than 35 years

To receive enough credits from the Social Security Administration (SSA) to qualify for retirement, you must have worked for at least 35 years and paid Social Security taxes during that time. If you start working at age 25 and work until at least age 60, you should have no problem meeting this work requirement. SSA takes into account maximum indexable monthly income ()

See also  These are new measures to protect those who are having difficulty paying rent from eviction | Univision Money News

2. Get maximum taxable amount every year

In order for your Social Security benefits to count toward the maximum amount, you must earn the maximum taxable amount during the 35 years you worked. By 2023, This maximum tax base is US$160,200. You meet this requirement by paying Social Security taxes.

3. Retire at 70

Although the law allows you to retire at age 67, it is best to claim it at age 70. According to experts, at the full retirement age of 67 you can increase the amount you receive by 24%. You should know that waiting past age 70 will not increase your benefits.

Pension Payments in the United States

Data on social security payments

Estimated average monthly Social Security benefits in 2023

• All retired workers: US$1,827.

• Retired worker with only one elderly spouse: US$2,972.

• All disabled workers: US$1,483.

• Disabled worker with young spouse and one or more children: US$2,616.

• All surviving spouses: US$1,704.

• Young wife living with two children: US$3,520.