The Social Security Administration (SSA) does not pay the same amount of money to all beneficiaries. Disability benefits (SSDI) and retirement checks do not have the same maximum amounts either.
Therefore, it is essential to know what you could receive in retirement. For example, if you get an average payment in 2024, you may receive about $1,907 claimed Social Security in the last COLA fact sheet.
However, that amount is far from the largest Social Security payment in 2024. Remember, that there is another key factor you should take into account. The age you file can affect your future payments.
MAXIMUM SOCIAL SECURITY BENEFIT IN 2024
The Administration has revealed that there will be a new amount for those who qualify for the largest payment. Do not forget that it was $4,555 in 2023 and it has increased more than COLA in 2024.
The new maximum Social Security benefit will be $4,873 in 2024. Therefore, the new amount is $318 extra. That is a massive boost since average retirees only get $59 more per month.
It is true that those who qualify for the largest retirement payment have paid a lot of money on payroll tax. Being a high earner, retiring at the age of 70 and working for at least 35 years is the only way to achieve it.
By a high earner, Social Security means earning the taxable maximum every year. This amount keeps increasing every year, and it goes up even more than COLA. For instance, it was $160,200 in 2023 and it is $168,600 in 2024.
LARGEST PAYMENT AT 62 AND AT FULL RETIREMENT AGE IN 2024
Since you can only receive a benefit worth $4,873 in 2024 if you have earned the taxable maximum for 35 years and retired at 70, claiming early means getting less money.
Social Security confirms that you can get a 30% reduction if you file at 62. As a matter of fact, you can only get as much as $2,710 in 2024 if you have worked for 35 years, earned the taxable maximum, and filed at 62.
Filing at Full Retirement Age is the best way to get 100% of your benefits. For example, if you qualify for the largest payment at Full Retirement Age, you can receive up to $3,822.
Do not forget that you can let your Social Security grow by 24% if you file at 70. Even if you are not a high earner, you can look for well-paid jobs to increase your future retirement checks. Get your SSA statement to see if you qualify for benefits and how much.