[US] Maximum Social Security entitlement for retiring at age 70

The US has no official retirement age and no single age at which to claim Social Security. For this reason, many Americans continue to work until they reach 70 and then sign up for Social Security, USA Today reports.

Delaying retirement until this point can lead to a  generous monthly benefit, whether individuals are entitled to Social Security's maximum monthly benefit or not.

Entitlement to an individual’s complete monthly Social Security benefit, based on their personal income history begins when full retirement age (FRA) arrives. 

That age can reportedly be 66, 67, or somewhere in between, dependent on birth year.

For each year people delay their Social Security filing beyond FRA, the monthly benefit will grow by 8 per cent and this bump is a permanent one.

For those filing for Social Security this year at age 70, the maximum monthly benefit is $4,873 but in order to receive $4,873 a month from Social Security, retirees must have worked for 35 years and earned a very high wage during that time. 

Here "very high" reportedly means a wage that has met or exceeded the Social Security wage cap for 35 years.

The wage cap for 2024 is $168,600. Last year, it was $160,200. The wage cap has risen with inflation through the years, meaning there might have been some years when individuals earned far less than $160,200 or $168,600 while remaining in line for Social Security's maximum monthly benefit this year.

For those nearing FRA and considering claiming Social Security, it could pay to work a little longer and delay filing until their 70th birthday. This could reportedly be a pragmatic move for people feeling less confident in the amount of money they have saved for retirement who know they will need Social Security to cover the bulk of their senior living expenses.

On top of delaying Social Security filing until age 70, they can also boost monthly benefits by trying to increase wages at the end of their career, either by pursuing a promotion and raise or by adding to their total income with a ‘side hustle’.

Source: USA Today

(Links via original reporting)

The US has no official retirement age and no single age at which to claim Social Security. For this reason, many Americans continue to work until they reach 70 and then sign up for Social Security, USA Today reports.

Delaying retirement until this point can lead to a  generous monthly benefit, whether individuals are entitled to Social Security's maximum monthly benefit or not.

Entitlement to an individual’s complete monthly Social Security benefit, based on their personal income history begins when full retirement age (FRA) arrives. 

That age can reportedly be 66, 67, or somewhere in between, dependent on birth year.

For each year people delay their Social Security filing beyond FRA, the monthly benefit will grow by 8 per cent and this bump is a permanent one.

For those filing for Social Security this year at age 70, the maximum monthly benefit is $4,873 but in order to receive $4,873 a month from Social Security, retirees must have worked for 35 years and earned a very high wage during that time. 

Here "very high" reportedly means a wage that has met or exceeded the Social Security wage cap for 35 years.

The wage cap for 2024 is $168,600. Last year, it was $160,200. The wage cap has risen with inflation through the years, meaning there might have been some years when individuals earned far less than $160,200 or $168,600 while remaining in line for Social Security's maximum monthly benefit this year.

For those nearing FRA and considering claiming Social Security, it could pay to work a little longer and delay filing until their 70th birthday. This could reportedly be a pragmatic move for people feeling less confident in the amount of money they have saved for retirement who know they will need Social Security to cover the bulk of their senior living expenses.

On top of delaying Social Security filing until age 70, they can also boost monthly benefits by trying to increase wages at the end of their career, either by pursuing a promotion and raise or by adding to their total income with a ‘side hustle’.

Source: USA Today

(Links via original reporting)