If an individual is a current or future claimant, they should start planning now so that they can get the most out of their benefits when the increase goes into effect. Monthly Social Security benefits will rise by $92 to $1,657 in 2022 on average, up from the current $1,425, according to The Sun.
If an individual is a current or future claimant, they should start planning now so that they can get the most out of their benefits when the increase goes into effect. Monthly Social Security benefits will rise by $92 to $1,657 in 2022 on average, up from the current $1,425, according to The Sun. (Photo: Forbes)
Social Security Retirement Benefits, How To Have Maximum Credit
In order to collect the full value of Social Security retirement benefits, individuals must be of a certain age and have a certain amount of earnings history. The highest monthly benefit in 2022 will be $3,240 for those who reach full retirement age (FRA) at the age of 66. However, the maximum benefit is $4,194 for those who are eligible and wait to file until they are 70 years old, as per Investopedia.
For the purposes of receiving Social Security benefits, you must have worked for years to be eligible for this amount. As long as you’ve worked for at least ten years and earned enough to use all of your work credits, you’ll be eligible for benefits. However, to have the maximum credit, a minimum of 35 years of employment is required, as per The Fool.
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If an individual is a current or future claimant, they should start planning now so that they can get the most out of their benefits when the increase goes into effect. Monthly Social Security benefits will rise by $92 to $1,657 in 2022 on average, up from the current $1,425, according to The Sun. (Photo: Getty)
The Threshold
Social Security benefits are calculated based on your 35 years of highest earnings, which is based on one’s average wage over that time period. In order to receive the most significant benefit, they’ll need to be paid at least as much as possible on average.
In 2022, the minimum wage will be $147,000. Inflation affects the amount each year. At least the inflation-adjustment equivalent of that limit must be earned every year for 35 years to stretch out the median earnings that benefits are calculated on, as per The Sun.
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