How Much Money Can You Make And Still Draw Social Security At Age 62
The age at which you file for Social Security benefits will have a major impact on the amount you receive each month. While you can receive larger monthly payments past delaying benefits, many workers choose to file every bit early equally possible at age 62. That tin be a smart strategy in many cases, and in that location are several advantages to challenge early on.
You can still earn a substantial corporeality in benefits by challenge early on, too. In 2022, the maximum you lot can collect past filing at historic period 62 is $2,364 per calendar month -- which is significantly higher than the $1,557 per month boilerplate benefit corporeality. Hither'due south what it takes to achieve the maximum monthly payments.
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How the length of your career affects your benefits
1 of the most important factors when it comes to your benefit amount is the number of years you've worked. Virtually people become eligible for Social Security retirement benefits once they've earned income for 10 years, but you'll need to piece of work for at least 35 years to receive the maximum benefit amount.
When computing the corporeality you'll receive, the Social Security Administration takes an boilerplate of your wages throughout the 35 highest-earning years of your career. That number is so adapted for aggrandizement, and the result is the corporeality y'all'll collect if you claim at your total retirement age (FRA).
If you lot work more than 35 years, only the years with the highest earnings will be counted -- which could increase your average and event in a higher benefit amount. If y'all work fewer than 35 years, withal, you lot'll take zeros added to the equation, which will bring down your average.
How much you lot'll have to earn to reach the maximum benefit corporeality
Your income is another crucial factor in reaching the highest benefit amount. The more than you're earning, the more yous'll be eligible to collect in benefits -- up to a certain point.
Once you surpass the maximum taxable earnings limit (which is the highest income that'south subject to Social Security taxes), a higher income won't consequence in additional benefits. To earn this maximum do good amount, and so, you'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, information technology will increase to $147,000 per twelvemonth. If your goal is to collect the maximum $2,364 per month at age 62, you'll need to be reaching these limits consistently throughout your career.
What if your earnings are falling short?
If you're earning plenty to reach the maximum do good amount, that'due south fantastic. Only the average worker volition struggle to reach the income limits, and not everyone tin can afford to work 35 years before claiming.
The good news is that if you're willing and able to filibuster benefits past age 62, you can earn closer to the maximum do good amount.
Say, for example, you take an FRA of 67 years old, and past claiming at that historic period, you lot could receive $ane,600 per month. If you were to claim early at 62, your benefits would exist reduced by xxx%, leaving you with $i,120 per calendar month. But if you delay benefits until age lxx, you'd receive your total benefit corporeality plus an extra 24%, or $ane,984 per calendar month.
Not everyone will exist able to await until age 70 to file for benefits. Merely if you're unable to reach the maximum do good amount, delaying Social Security is one of the best and easiest ways to heave your benefits.
Source: https://www.fool.com/retirement/2021/10/22/claiming-social-security-62-maximum-you-can-earn/
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