How Much Will I Draw At 62
Claiming Social Security at 62? Here'south the Maximum You Tin Receive
Although y'all'll receive reduced checks by challenge early on, you can still receive thousands of dollars per calendar month.
Key Points
- In that location are several factors that impact your benefit corporeality.
- You can earn up to $ii,364 per month by claiming at age 62.
- How much you lot'll actually receive will depend on your income and the length of your career.
The age at which y'all file for Social Security benefits will accept a major bear upon on the amount yous receive each month. While you can receive larger monthly payments by delaying benefits, many workers choose to file as early as possible at age 62. That can be a smart strategy in many cases, and there are several advantages to claiming early on.
Yous tin can still earn a substantial amount in benefits by claiming early, as well. In 2022, the maximum you tin can collect by filing at age 62 is $2,364 per month -- which is significantly college than the $1,557 per calendar month average benefit amount. Here's what information technology takes to achieve the maximum monthly payments.
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How the length of your career affects your benefits
One of the near of import factors when information technology comes to your benefit corporeality is the number of years you've worked. Near people become eligible for Social Security retirement benefits one time they've earned income for 10 years, but you'll need to piece of work for at to the lowest degree 35 years to receive the maximum benefit amount.
When calculating 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 then adjusted for inflation, and the result is the corporeality you lot'll collect if you claim at your full retirement age (FRA).
If you work more 35 years, only the years with the highest earnings volition be counted -- which could increase your average and result in a higher benefit amount. If you piece of work fewer than 35 years, however, you'll have zeros added to the equation, which volition bring down your average.
How much y'all'll have to earn to reach the maximum benefit amount
Your income is some other crucial factor in reaching the highest do good amount. The more you're earning, the more you lot'll be eligible to collect in benefits -- upwards to a sure indicate.
One time you lot surpass the maximum taxable earnings limit (which is the highest income that's subject to Social Security taxes), a higher income won't result in boosted benefits. To earn this maximum do good amount, then, you lot'll need to attain the maximum taxable earnings limit.
This limit changes from year to yr to account for aggrandizement. This year, the limit is $142,800 per year, but in 2022, it will increase to $147,000 per yr. 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 yous're earning enough to reach the maximum benefit corporeality, that's fantastic. But the average worker will struggle to accomplish the income limits, and non everyone tin beget to work 35 years before challenge.
The good news is that if you're willing and able to delay benefits by age 62, you lot can earn closer to the maximum benefit amount.
Say, for example, yous have an FRA of 67 years onetime, and by claiming at that age, yous could receive $1,600 per calendar month. If you were to merits early on at 62, your benefits would be reduced by xxx%, leaving y'all with $1,120 per month. Only if you delay benefits until age 70, you'd receive your total benefit amount plus an extra 24%, or $i,984 per calendar month.
Not everyone will be able to expect until age 70 to file for benefits. But if you're unable to reach 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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