In the USA, According to Social Security Administration, an individual who files a claim for Social Security retirement benefits, as a pension in 2021 can receive per month is:
- $3,895 for someone who files at age of 70.
- $3,148 for someone who files at (currently 66 and 2 months).
- $2,324 for someone who files at the age of 62.
- For your information, the estimated average Social Security Retirement benefit in 2021 is $1,543 a month and the average disability benefit is $1,277.
Who is eligible for the maximum Social Security benefit?
People whose earnings are equivalent to or exceeded Social Security’s, maximum taxable income— the number of your earnings on which you pay Social Security taxes — for at least 35 years of their working lives.
The maximum taxable income in 2021 is $142,800. The figure is adjusted annually based on changes in national wage levels, and thus the maximum benefit changes each year.
Maximum Taxable Earnings Each Year
| Year | Amount |
|---|---|
| 2015 | $118,500 |
| 2016 | $118,500 |
| 2017 | $127,200 |
| 2018 | $128,400 |
| 2019 | $132,900 |
| 2020 | $137,700 |
| 2021 | $142,800 |
An important point to remember
The maximum benefit is not to be confused with the maximum family benefit. That is the most a family can collectively receive from Social Security (including retirement, spousal, children’s, disability, or survivor benefits) on one family member’s earnings record.
What is a maximum family benefit?
The maximum family benefit involves earnings only on an individual basis only. It does not incorporate payments to other family members on their own records.
Moreover, if any one of your family members is claiming multiple benefits — if, say, your husband could get retirement benefits on his record and spousal benefits on yours — Social Security will not pay both clubbed. It will pay an amount equal to the higher of the two.
It is difficult to predict how much maximum you will receive from Social Security subject to when you are away a few years from retirement. But you can calculate your social security benefits in terms of the following facts that how much maximum possible, you will get from Social Security in retirement age.
Social Security Payment average consideration
The Social Security benefits average was $1,543 per month in January 2021.
The maximum possible Social Security benefit for individuals who retires at full retirement age in 2021 is $3,148. However, a worker would need to earn the maximum taxable amount which is currently $142,800 for 2021, over a total of 35-year career to get this Social Security payment.
Calculation of Social Security Payment
Social Security payments are calculated on the basis of the 35 highest-earning years of an Individual’s career.
If you have worked for more than 35 years, then your lowest-earning years would not be calculated, which results in a higher payment. Those individuals who have not worked for 35 years, their average will remain zero into the Social Security calculation and get smaller payments.
Role of Age Factor in Social Security Benefit
Age plays a major role in Security Security Benefit, your monthly payment is decreased if you claim before your full retirement age which generally lies between 66 and 67.
You can get more monthly payments if you delay in claiming between your full retirement age and age 70.
The government has prescribed more options for married couples.
Married couples are eligible for Social Security payments equivalent to 50% of the higher-earning spouse’s payment if that’s more than the payments subject to their own work record. Spousal payments are reduced if you claim them before your full retirement age.
Deduction of Medicare Premium from the Social Security Payment
Many retirees have deducted premium payments from their Social Security checks. In 2021, the standard Medicare Part B premium is $148.50 per month.
Medicare Part B payments are banned by the law from decreasing Social Security payments for existing beneficiaries subject to Medicare Part B premium could not be more than the annual Social Security cost-of-living adjustment.
Remember Income Tax Withholding
If any individual has had another source of income in addition to Social Security Payment and comes under the Income Tax range then you will have to pay income tax on their Social Security payment, otherwise, you will have to pay no tax, if your earnings are from Social Security payment only.
FAQs
What is the Maximum Social Security Benefit?
The maximum possible Social Security Benefit depends on the basis of the age of an individual when he retires. In the last year – 2020, a worker who retires at full retirement was eligible for up to $3,011 per month.
The maximum benefits cease if you apply for social security payment prior to full retirement age and delay in retirement will give you a higher monthly benefit. For getting these big payments, you are required to maintain a high-income standard throughout a career of 35 years or more.
How do I get a New Social Security Card?
Mostly, many U.S. citizens with a driver’s license or state-issued identification card, apply for a replacement Social Security Card online in exchange with My Social Security account but this is not justified.
However, you can also fill out a paper application and then mail it OR you can submit it to the local Social Security office.
When Can I Apply for Social Security?
You can apply for Social Security online at ssa.gov, by calling toll-free number 1-800-772-1213 OR local office Social Security office. It is hereby informed that minimum age is required at least 61 years and 9 months for submission of an application for retirement or spousal benefits, and payments can start as early as age 62.
Your age plays an important role in the calculation of payment amount, as pension payment changes at various age stages.
How Much Social Security Will I Get?
For getting Social Security, you will have to generate a My Social Security account at ssa.gov/myaccount and viewing your Social Security statement. Your statement lists will display how much you are likely to get at the time of retirement if you are working continuously at your current salary till full retirement age, age 62, and age 70.
What Is the Social Security Tax Limit?
Most workers pay 6.2% of their earnings into the Social Security system and employers also contribute in order to match this amount. Self-employed workers contribute 12.4% of their salary.
However, in 2020, earnings – $137,700 are not taxed by Social Security or used to calculate retirement payments. Workers who earn more than $137,700 will see a bump in their paychecks when Social Security taxes stop being withheld.
Your Social Security payments may be taxable in retirement, if the sum of gross income, nontaxable interest, and half of your Social Security benefit exceeds $25,000 ($32,000 for couples), federal income tax could be due on part of your Social Security benefit.
If these income sources exceed $34,000 ($44,000 for couples), up to 85% of Social Security payments can be taxable.