How Much Can I Make on Social Security at 62
Claiming Social Security at 62? Here'south the Maximum You Can Receive
Although y'all'll receive reduced checks by claiming early, you lot can still receive thousands of dollars per calendar month.
Central Points
- There are several factors that impact your benefit amount.
- You can earn up to $2,364 per month by claiming at age 62.
- How much you'll actually receive volition depend on your income and the length of your career.
The historic period at which you lot file for Social Security benefits will have a major affect on the corporeality you receive each month. While you can receive larger monthly payments by delaying benefits, many workers cull to file every bit early on as possible at age 62. That can exist a smart strategy in many cases, and there are several advantages to claiming early on.
You lot can still earn a substantial amount in benefits past challenge early, too. In 2022, the maximum y'all can collect by filing at age 62 is $two,364 per month -- which is significantly higher than the $1,557 per month average do good amount. Here's what it takes to achieve the maximum monthly payments.
How the length of your career affects your benefits
One of the almost important factors when it comes to your benefit amount is the number of years you've worked. Most people become eligible for Social Security retirement benefits once they've earned income for 10 years, only you'll demand to work for at least 35 years to receive the maximum benefit corporeality.
When calculating the amount you'll receive, the Social Security Administration takes an average of your wages throughout the 35 highest-earning years of your career. That number is so adapted for inflation, and the upshot is the amount yous'll collect if you claim at your total retirement age (FRA).
If you work more than 35 years, only the years with the highest earnings will be counted -- which could increase your average and result in a higher benefit amount. If you work fewer than 35 years, yet, you'll have zeros added to the equation, which will bring down your average.
How much you'll have to earn to achieve the maximum benefit amount
Your income is another crucial factor in reaching the highest do good corporeality. The more you lot're earning, the more than you'll be eligible to collect in benefits -- upwardly to a certain indicate.
One time you lot surpass the maximum taxable earnings limit (which is the highest income that's subject to Social Security taxes), a college income won't issue in additional benefits. To earn this maximum do good amount, then, yous'll need to reach the maximum taxable earnings limit.
This limit changes from year to year to account for inflation. This year, the limit is $142,800 per year, but in 2022, it volition increase to $147,000 per year. If your goal is to collect the maximum $2,364 per month at age 62, you'll need to exist reaching these limits consistently throughout your career.
What if your earnings are falling short?
If yous're earning enough to reach the maximum do good corporeality, that's fantastic. But the average worker will struggle to reach the income limits, and not everyone can afford to work 35 years before challenge.
The good news is that if you're willing and able to delay benefits past age 62, you can earn closer to the maximum do good amount.
Say, for example, you lot have an FRA of 67 years old, and past claiming at that age, you could receive $one,600 per calendar month. If you were to claim early on at 62, your benefits would be reduced by 30%, leaving you lot with $1,120 per month. But if yous delay benefits until age lxx, you'd receive your full benefit amount plus an extra 24%, or $1,984 per month.
Non anybody volition be able to await until age 70 to file for benefits. Just if you're unable to accomplish the maximum benefit amount, delaying Social Security is one of the best and easiest ways to boost your benefits.
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Source: https://www.fool.com/retirement/2021/10/22/claiming-social-security-62-maximum-you-can-earn/
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