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Social Security: What is the maximum retirement benefit for 2023?
With the COLA increase at the start of 2023 your benefits will definitely increase, but by how much?
The Social Security Administration (SSA) oversees the financial support programmes available to millions of Americans. Some receive disability support but the majority receive the retirement benefits, 77.1 percent of all claimants a retirees.
The upcoming cost of living adjustment (COLA) increase of 8.7 percent will bump up payments again after a big increase in 2022,
The maximum benefit one could receive in 2022 is $4,558 per month. However, this is only for people who retire at 70 beyond the full retirement age of 67. For the majority of Americans, the maximum retirement payment will be $3,636, which will apply to those people retiring at the full retirement age of 65 - 67, depending on the year they were born.
How is the maximum benefit calculated?
The main factors taken into consideration for retirees are the age of retirement and the 35 years in which the worker earned the most, as an annual average. Based upon the latter, a formula is applied in which the 35 year average is entered, excluding the last two years of work.
Full retirement age is different depending on the year of birth, meaning different age people will have different retirement ages in which they can receive their full state pension.
In 2022 the average monthly payment for retired workers was $1,673.88, which is expected to rise to $1,819 when the upcoming 8.7 percent increase is factored in. This means that the average retirement benefits recipients can expect an increase of around $146 per month.
The SSA has an online benefits calculator that you can use to obtain an estimate of your monthly benefits.