Only a select group of consistently high-earning individuals who have deliberately delayed claiming benefits until reaching the age of 70 are fortunate enough to receive checks / payments of this substantial magnitude.
Strategies that pave the way to securing a monthly Social Security payment of $4,555.
In the year 2023, the maximum achievable monthly Social Security benefit for retirees stands at $4,555. While the precise number of individuals who receive this exact sum isn’t readily disclosed by the Social Security Administration, it’s safe to say that obtaining $4,555 each month from your Social Security entitlement would position you in an exclusive and privileged category. As of July, the mean monthly benefit for retired workers was recorded at a modest $1,838.
If your aspirations include attaining the most sizeable Social Security benefit possible, or if you’re aiming to optimize your Social Security income, it’s imperative to commence your preparations well in advance of your retirement. Here are four key actions to take while you’re still active in the workforce:
How to Achieve the $4,555 Monthly Retirement Benefit You Deserve
Attaining the coveted $4,555 monthly benefit (or its equivalent at your chosen retirement age) is likely to require more than 35 years of active work and income. In the initial stages of your career, most individuals aren’t high earners, making it probable that you’ll need to replace some of your lower-earning years from early on with higher-earning years later in order to secure the most substantial payments possible.
Why Waiting Until 70 for Social Security Could Make All the Difference
Although you can commence claiming Social Security benefits from the age of 62, it’s important to note that your benefit will be reduced by 30% compared to what it would be if you waited until your designated “full retirement age” as determined by the government. (For individuals born in 1960 or later, this age is set at 67.) Opting to begin benefits after reaching full retirement age allows you to accumulate an additional 8% in delayed retirement credits each year until you reach the age of 70, at which point your benefits will reach their maximum.
Every one of these delayed retirement credits is crucial in your pursuit of securing the most sizeable Social Security benefits possible. Even if you initiate your first payment at the age of 69 years and 11 months, you’ll still fall short of the maximum attainable benefit.
Prioritize Savings in Your Retirement Accounts
Life is unpredictable, and circumstances might arise that necessitate you to begin collecting Social Security prior to the age of 70. Whether due to unforeseen health expenses or an inability to work as long as you’d planned, having a robust financial cushion, both within retirement accounts and an emergency fund, can enable you to forestall claiming benefits earlier than intended.
Ironically, having a substantial nest egg can reduce your dependency on Social Security payments during retirement. This financial security provides you with the flexibility to commence benefits earlier, albeit at a reduced monthly amount.