If you earn more than the taxable maximum amount in a single year, you won't have to pay Social Security taxes on that income. "In order to receive the maximum Social Security benefit, you would need to earn at least the maximum Social Security wage base for at least 35 years in your career," says Jim Blankenship, a certified financial planner for Blankenship Financial Planning in New Berlin, Illinois, and author of "A Social Security Owner's Manual." "The figure is adjusted each year based on changes to the national average wage index." Those who have salaries larger than the taxable maximum do not pay Social Security taxes on that income or have those earnings factored into their future Social Security payments. Workers pay 6.2% of their earnings into the Social Security system, and employers match this amount until their salary exceeds the taxable maximum amount of income for that year. Only $39,600 was taxed by Social Security in 1985. Back in 2000, the taxable maximum was just $76,200. However, the exact amount changes each year and has increased over time. The maximum wage taxable by Social Security is $147,000 in 2022.
In recent years, you need to earn a six-figure salary to get a top Social Security payment. You will need to maintain a high income throughout your career to qualify for large Social Security payments in retirement. A high earner who enrolls at age 70 could get a maximum Social Security benefit of $4,194 each month. Only those who delay claiming past full retirement age are eligible for Social Security payments of significantly more than $3,500 per month. A person who claims payments at age 62 in 2022 has a smaller maximum possible benefit of $2,364 monthly. Those who postpone claiming Social Security between ages 62 and 70 become eligible for higher payments with each month of delay.įor example, someone who signs up for Social Security at full retirement age in 2022, which is 66 and four months for people born in 1956, could be eligible for as much as $3,345 per month. The maximum Social Security benefit changes based on the age you start your benefit.
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