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3 requirements to get $4,555 from Social Security: Who gets the maximum benefit?
If you are a retiree who fits some very specific criteria then you could get the bumper payment but very few will qualify or claim it.
The Social Security Administration (SSA) issues tens of millions of payments to all beneficiaries of the various programs they oversee, the vast majority of which are retirees.
The exact amount of the check each beneficiary receives depends on a number of factors, including the number of years worked, the beneficiary’s age at retirement, and, of course, the income that the person in question received throughout their working life. This year, the SSA applied an 8.7 percent Cost-of-living adjustment (COLA) increase to American benefits. The COLA is calculated each year to help payments maintain their purchasing power with inflation, which has been particularly high the last 18 months.
Once the COLA was applied, the average retiree payment increased to about $1,830 a month. However, some are set to receive more than $4,000. Let’s see who qualifies.
What to consider when applying for Social Security
If you’re thinking of retiring soon, here are the three key factors to consider if you think you may be close to the maximum payment of $4,555 a month.
To calculate your retirement money, the SSA will examine at least 35 years of work.
You must earn or exceed the salary cap in each of those 35 years. In addition, you must pay Social Security payroll taxes on the maximum taxable income in those 35 years of highest earnings. The amount changes every year. In 2023, the number stands at $160,200.
This is how the figures has increased steadily in recent years:
- 2023: $160,200 annually
- 2022: $147,000 annually
- 2021: $142,800 annually
- 2020: $137,700 annually
- 2019: $132,900 annually
To receive the maximum benefit, you need to apply for retirement benefits when you reach 70 years of age. This isn’t always the best idea for everyone as it means at least three more years of work after full retirement age.
Requirements to earn the maximum benefit of $4,555 from Social Security in 2023
With all these aspects to consider, there are two necessities to claim the $4,555 monthly check:
- You must have been earning the highest taxable wage for 35 years of your working life and
- You must have waitied until the age of 70 to file for Social Security.
In reality, very few Americans will claim this amount. People earning salaries in the six-figures for the majority of their life will have money saved by various methods for retirement without the need to access social security.