How much in social security benefits will you receive? Here’s how to determine it

The typical retiree will get $1,827 in Social Security payments per month by 2023. However, the monthly maximum that you can receive is $4,555.

Several factors, including your earning history, the duration of your employment, and the age at which you register for Social Security, will determine exactly where your benefit amount falls.

Here’s how you can estimate how much you will receive in benefits even if you are still a few years away from retirement.

How to calculate your benefits

Checking the amount of your potential benefits is quicker and easier than you would expect.

If you haven’t already, you must first register a mySocialSecurity account. When you log in, you may access your online statements to get an estimate of your complete benefit amount based on your actual career earnings.

While you’re reviewing your estimate, bear the following in mind:

• Your estimated benefit might not match your real benefit: Depending on your birth year, your full retirement age (FRA), which ranges from 66 to 67, is the age at which you can claim social security benefits. Your actual benefit amount will differ from your online estimate if you file before or after that age.
• Future profits can influence your estimate: Your benefit amount can change between now and retirement if you anticipate working for a considerably longer period and if your income fluctuates dramatically.
• You might not have an estimation at the moment. You must have been employed and paid Social Security taxes for at least ten years to be eligible for retirement benefits. You won’t see an estimate on your statements if you haven’t worked for that long.
• Planning for retirement will be simpler if you have a rough idea of how much you will get in benefits in the future. Therefore, it is advisable to examine your anticipated benefits as soon as possible.

How to increase the amount of your benefit

There are specific steps you can take to increase your benefits if your estimate is lower than you anticipated it to be (or if you want to maximize your monthly payments):

• Verify your employment history again: The Social Security Administration (SSA) determines your benefits by averaging your wages over the 35 years of your employment during which you earned the most money, then accounting for inflation. You’ll need to have worked for at least 35 years before filing to make the most money.
• Put in a little more time at the office: Even after 35 years of employment, you may still receive more benefits by putting in a little more time. You probably make more money now than when your job started. Working a few extra years now when your income is higher might result in bigger payouts because the SSA only averages your highest-earning years.
• Postpone filing for benefits: When you apply for Social Security, you can do so at age 62 or any time after that, but the longer you wait (up to 70 years of age), the more you’ll get. Delay benefits even for a year or two; you could earn hundreds of extra each month.
• Utilize all the benefits to which you are entitled: In addition to retirement benefits, you may also be qualified for spousal benefits, divorce benefits, or survivor benefits. If you are eligible, utilizing these payments to the fullest extent possible is advisable since they can significantly raise your monthly income.
• Change your mind: The option to stop receiving benefits, repay any money you have already received, and resume receiving benefits later may be available. You can do this as long as you’ve been collecting benefits for less than a full year. This can happen if you get an inheritance or a job after you retire and feel you can wait to file for benefits to receive a larger payout. To do this, you must submit Form 521, Request for Withdrawal of Application, from the Social Security Administration.
• Check for errors: Your social security earnings can be reduced due to a mistake. When you get your Social Security statement, verify the figures and notify the Social Security Administration of any errors. Remember that the average of your 35 greatest earning years determines your benefits. Even one or two of those years’ wrong calculations might have long-term effects on your payout.

Contact Information:
Email: [email protected]
Phone: 7705402211

Bio:
Mack Hales has spent the past 4 decades helping clients prepare for retirement and manage their finances successfully. He also works with strategies that help clients put away much more money for their retirement than they could in an IRA or even a 401k. We involve the client’s CPA and/or their tax attorney to be sure the programs meet the proper tax codes.

Mack works with Federal Employees to help them establish the right path before and after retirement. The goal is to help the client retire worry-free with as much tax-free income as possible and no worries about money at risk of market loss during retirement.
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Mack has resided in Gainesville, GA since 1983, so this is considered home. Mack is married to his wife of 51 years, has two boys and five grandchildren.