Will My Pension Reduce The Amount Of My Social Security Benefit?
There is no set maximum that citizens can hope to receive in Social Security Benefit when they retire. The maximum varies from one individual to another, depending on what age they retire at and what their annual earnings for the top 35 years have been. Basically though, the maximum s ocial security benefit is attained when you reach the age of 70. Calculation of Social Security Benefit is a complex affair. You can attempt it on your own if you have sufficient information of how the system works; or you can ask a social security official to calculate for you the maximum amount you can expect to receive.
Your Earnings will Influence the Amount
The higher you make every year, the higher the percentage of benefits you are set to receive. The social security retirement benefit is based on your best 35 years in terms of earnings. Knowing this early enough is good as it can help you stay on a well-paying job longer. The maximum taxable amount in the US is approximately $106,000. If this has been your income for at least 35 years and you push your application for social security benefit to when you are 70, you will receive the maximum benefit possible.
How to Increase your Maximum Benefit
The first thing you must do is delay taking your social security benefits until after your full retirement age. There is a penalty for taking social security benefit before your full retirement age. Presently, the penalty is 25% for every month social security is taken. Put off applying for social security retirement benefit up to age 70 if possible to maximize the amount you receive. If for instance your retirement age is 65, at which point you receive $2,100 in social security retirement benefit; holding back until you are 70 will increase this amount to $3,000.