Most seniors rely on Social Security for their income. Even though the average benefit will be $1,657 per month in 2022, benefits will provide a total of just $19,884 next year for the typical American.
Some retirees will end up with more money than that.
A small group of seniors could see their Social Security checks increase in the future. If you want to bring home large checks, here's what you have to do.
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How can you get $50,328 in Social Security checks?
You would need a monthly payment of $4,194 in order to add up to $50,328 in Social Security payments in 2022. The maximum benefit the Social Security Administration will give out next year is that.
There is a simple reason for a maximum benefit. Social Security benefits are equal to your average wages over the course of 35 years. Not all wages count. The wage base limit is set by the Social Security Administration. When a person's benefits are calculated, wages earned above the cap won't count.
If you want $50,328 in Social Security checks, you'd need to earn at least the wage base limit for at least 35 years of your career.
You have to put off claiming Social Security until you are 70. Delayed retirement credits that can be earned between full retirement age and 70 are needed because the standard benefit each retiree gets is increased by delayed retirement credits.
If you earned the largest average wage, you would need to max out these credits to boost your Social Security checks to the maximum of $4,194 per month or $50,328 per year.
Social Security checks will be worth $50,328 in 2022.
Chances are very good that your Social Security check won't provide $50,328 in 2022. The wage base limit is 35 full years for Americans. Not many people delay their first check until 70.
The wage base limit will be 147,000 in 2022. The wage cap does change each year due to inflation, but this number gives you an idea of how high it is. If you don't do it for a full 35 years, you won't get the maximum monthly benefit even if you earn a lot.
You will need to wait until after the age at which most people retire to start getting Social Security checks if you want to earn the inflation-adjusted equivalent of 147,000. If you want to file for benefits at 70, you'll need to work much longer than normal or have a lot of savings.
You can try to increase your income by planning a delayed benefits claim. Even if you don't end up with $50,328 in benefits, you will still increase your Social Security income.
Even with a large check, Social Security only replaces 40% of pre-retirement income. If you want to maintain your standard of living after leaving the working world, you'll need savings.
You should be able to set yourself up for a secure retirement if you start building your nest egg immediately and aim to max out your Social Security income.
