Current:Home > reviewsHere's the maximum Social Security benefit you can collect if you're retiring at 70 this year -Aspire Money Growth
Here's the maximum Social Security benefit you can collect if you're retiring at 70 this year
View
Date:2025-04-16 09:46:59
There's no official retirement age in the U.S., and there's also no such thing as a single age at which to claim Social Security. Because of this, you may decide to push yourself to work until age 70 and sign up for Social Security at that point.
Doing so could result in a very generous monthly benefit. And that holds true whether you're in line for Social Security's maximum monthly benefit or not.
You might enjoy a really nice payday
You're entitled to your complete monthly Social Security benefit, based on your personal income history, when full retirement age (FRA) arrives. That age is either 66, 67, or somewhere in between, depending on your birth year.
But for each year you delay your Social Security filing beyond FRA, your monthly benefit will grow by 8%. And in case it's not clear, that boost is a permanent one for you to enjoy.
Meanwhile, if you're filing for Social Security this year at age 70, the maximum monthly benefit you can collect is $4,873. However, to receive $4,873 a month from Social Security, you must be someone who worked for 35 years and earned a very high wage during that time. And "very high" means a wage that has met or exceeded the Social Security wage cap for 35 years.
Social Security is largely funded by payroll taxes. But workers don't pay taxes on all of their income. Rather, a wage cap is established every year, which is the earnings amount on which workers will pay those taxes.
This year, that cap sits at $168,600. Last year, it was $160,200. Since the wage cap has risen with inflation through the years, there may have been some years when you earned a lot less than $160,200 or $168,600 and are still in line for Social Security's maximum monthly benefit this year.
The point, however, is that to qualify for that benefit, your earnings had to be really high throughout your career. If that wasn't the case, you may not be looking at a monthly paycheck of $4,873, despite having delayed your Social Security filing until 70.
That said, you might still be in line for a pretty nice monthly benefit. Even a monthly payday of $3,873 or $3,000, for that matter, could do a world of good for your retirement finances.
Delaying your filing could pay off
If you're nearing FRA and considering claiming Social Security, it could pay to work a bit longer and delay your filing until your 70th birthday. This could be an especially wise move if you're not feeling super confident in the amount of money you have saved for retirement and know you'll need Social Security to cover the bulk of your senior living expenses.
In addition to delaying your Social Security filing until age 70, you can boost your monthly benefit by trying to increase your wages at the tail end of your career, whether by fighting for a promotion and raise at work or adding to your total income with a side hustle.
Either way, there's much to be gained by claiming Social Security at 70. And this holds true even if you aren't in line for the program's maximum monthly payout.
The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.
The $22,924 Social Security bonus most retirees completely overlook
Offer from the Motley Fool: If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.
View the "Social Security secrets" »
veryGood! (92)
Related
- Rylee Arnold Shares a Long
- U.S. Pipeline Agency Pressed to Regulate Underground Gas Storage
- Shakira Seemingly References Gerard Piqué Breakup During Billboard’s Latin Women in Music Gala
- It cost $38,398 for a single shot of a very old cancer drug
- Costco membership growth 'robust,' even amid fee increase: What to know about earnings release
- Why Black Americans are more likely to be saddled with medical debt
- NASA mission to the sun answers questions about solar wind that causes aurora borealis
- Today’s Climate: July 15, 2010
- Nearly half of US teens are online ‘constantly,’ Pew report finds
- Today’s Climate: July 29, 2010
Ranking
- Chuck Scarborough signs off: Hoda Kotb, Al Roker tribute legendary New York anchor
- 18 Slitty Dresses Under $60 That Are Worth Shaving Your Legs For
- WWE Wrestling Champ Sara Lee's Cause of Death Revealed
- Black Death survivors gave their descendants a genetic advantage — but with a cost
- The Daily Money: Spending more on holiday travel?
- Wildfire smoke causes flight delays across Northeast. Here's what to know about the disruptions.
- Second woman says Ga. Republican Senate candidate Herschel Walker paid for abortion
- A doctor's Ebola memoir is all too timely with a new outbreak in Uganda
Recommendation
Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
Suburbs delivered recent wins for Georgia Democrats. This year, they're up for grabs
Flash Deal: Get 2 It Cosmetics Mascaras for Less Than the Price of 1
Outcry Prompts Dominion to Make Coal Ash Wastewater Cleaner
Can Bill Belichick turn North Carolina into a winner? At 72, he's chasing one last high
Brain Cells In A Dish Play Pong And Other Brain Adventures
Unfounded fears about rainbow fentanyl become the latest Halloween boogeyman
Supreme Court sides with Jack Daniels in trademark fight over poop-themed dog toy